Agreement to proceed on basis of rebuild binding on insurer

Agreement to proceed on basis of rebuild binding on insurer

Gidden v IAG New Zealand Ltd [2016] NZHC 948.

Mr. and Mrs. Gidden’s house suffered extensive damage during the Christchurch earthquakes. The couple lodged a complaint with the Residential Advisory Service (RAS) after a series of delays during which their insurer, IAG, assessed whether the house was a rebuild or a repair. To resolve the issues over the handling of the claim, the RAS arranged a meeting between the parties, the outcome of which was a typed and signed agreement whereby they agreed to “proceed in good faith on the basis of the house…being a rebuild” and to “reach agreement on costs.” The Court found that the outcome was intended to be legally binding.

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Landlords can’t recover from negligent tenants

Landlords can’t recover from negligent tenants

HOLLER & ROUSE v OSAKI & ANOR [2016] NZCA 130, 15 April 2016.

In 2009, a tenant of a house, Mr Osaki, negligently caused a fire that substantially damaged the house he was renting. His landlords were indemnified by AMI for the cost of repairs to the house. AMI exercised its subrogation rights to claim the repair costs from the tenants.

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Disciplinary Complaints: The Legal Complaints Review Officer’s Role

Disciplinary Complaints: The Legal Complaints Review Officer’s Role

DELIU v CONNELL [2016] NZHC 361, 4 March 2016.

This case note considers a recent High Court decision in which an Auckland lawyer, Mr D, challenged the decision of the Legal Complaints Review Officer (LCRO) by way of judicial review. The LCRO had rejected a complaint made by Mr D against another lawyer (Mr C). In the course of considering Mr D’s judicial review proceeding, the court made important observations on the nature of the LCRO’s function and the weight the LCRO must give the Standards Committee decision being reviewed.  

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Air New Zealand baggage dispute

Air New Zealand baggage dispute

AIR NEW ZEALAND LTD v DISPUTES TRIBUNAL ([2016] NZHC 393, 9 March 2016 .

Mr and Mrs Green (not their real names) flew to London on an Air New Zealand flight. Their suitcases failed to arrive until nine days into their stay. When Mrs Green asked if their lost items would be replaced by the airline on a “like-for-like” basis she was told they would. The Greens went shopping and spent $26,000 on replacements items. They recovered $1,900 from their travel insurance. They brought a claim against Air New Zealand to the Disputes Tribunal for $15,000.

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Rise of the machines

Rise of the machines

TECHNOLOGY IN LAW AND INSURANCE

According to a recent article in NZ Lawyer, robots replacing lawyers is a “near certainty”. The website stating that approximately 46% of New Zealand jobs will be taken over by machines or automated in the next 20 years. The law is apparently not immune to this development. Some predict that lawyers could be replaced by artificial intelligence sooner than we think.

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GST on Damages Paid under a Liability Policy

SOUTHLAND INDOOR LEISURE CENTRE CHARITABLE TRUST v INVERCARGILL CITY COUNCIL [2016] NZHC 41, 1 February 2016.

While the position with respect to whether a successful plaintiff needs to account for GST when receiving a damages award is well established, what has been less clear is whether the position is different when the defendant is insured for its liability to the plaintiff and the damages is being paid by an insurer under a liability policy. 

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Solicitor’s Negligence—Strike out

CLEARY v EWART ([2015] NZHC 3259, 16 December 2015

The Plaintiff (C) had entered into an agreement called an Option Deed with a Fijian company, (V).   The deed gave V the option to enter into a sale and purchase agreement with C for the sale of land in Fiji if the relevant Land Trust Board approval was given.   C had no right under the Option Deed to compel the option to be exercised in its favour. 

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Limited Liability for Housemovers

Limited Liability for Housemovers

Circuit v Andrews Housemovers Limited [2015] NZDC 24886 [18 December 2015]

Mr and Mrs Circuit purchased a house in Ellerslie, to move to their own property in Tairua. They engaged the defendant, AHL, to transport the house. During the move itself, the front section of the house was completely destroyed. AHL accepted liability for the loss under the Carriage of Goods Act 1979, but said that its liability was limited by the Act to the sum of $2000—a problem that the plaintiffs were keen to circumvent because they had not followed AHL’s advice to insure the house while in transit.

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Prattley Enterprises Ltd v Vero Insurance New Zealand Ltd

Prattley Enterprises Ltd v Vero Insurance New Zealand Ltd

[2016] NZCA 67, 14 March 2016

The Court of Appeal’s recent decision in Prattley Enterprises Limited v Vero Insurance New Zealand Limited [2016] NZCA 67 provides welcome certainty to insurers on the issue of validity of settlement agreements.

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