When does time run on a contribution claim?
/Beca Carter Hollings & Ferner Limited v Wellington City Council [2022] NZCA 624
The Court of Appeal has recently upheld a High Court decision that the Building Act 10-year longstop does not apply to contribution claims against third parties. Contribution claims are instead governed by s 34 of the Limitation Act 2010. This means that time does not begin to run on contribution claims until settlement or judgment occurs. Insurers of third parties, such as professionals or construction entities, remain potentially ‘on the hook’ for much longer than previously thought.
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