Contractual obligations not covered under a liability policy: Fletcher v Chubb & BHSI

Contractual obligations not covered under a liability policy: Fletcher v Chubb & BHSI

The Fletcher Construction Company Ltd v Chubb & BHSI [2023] NZHC 943

The New Zealand High Court recently looked at whether a third-party liability policy provided any cover to a head contractor for its liability to the principal under an indemnity clause in the  construction contract. This decision provides helpful guidance on the applicable legal principles.

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Get to know Niamh

Get to know Niamh

Niamh Leuthart completed her Bachelor of Laws and Bachelor of Arts (Politics) at the University of Otago in December 2022. She completed the last 6 months of her degree in Ireland at the University College of Dublin. Niamh is soon to be admitted to the New Zealand High Court in 2023.

Prior to joining Fee Langstone in February 2023, Niamh gained broad litigation experience as a Law Clerk at a specialist private client firm. There, Niamh assisted on complex disputes within the Trust and Estates Team and was involved in preparing matters for the Family Court. She looks forward to working on a range of commercial litigation matters with Fee Langstone.

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Get to know Jono

Get to know Jono

Jono Raymond recently completed a Bachelor of Laws and Commerce, majoring in Economics from the University of Otago.  Jono is originally from Christchurch but has moved up to Auckland to start his professional career with Fee Langstone as a Graduate.  Jono will be admitted to the New Zealand High Court in 2023. Outside of the office, Jono loves playing golf and socialising with friends and family.

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The scope of ‘Design and Construct’ Professional Indemnity Cover

The scope of ‘Design and Construct’ Professional Indemnity Cover

FKP Commercial Developments Pty Ltd v Zurich Australian Insurance Ltd [2022] FCA 862

Head contractors will often assume contractual responsibility for both design and construction of a development.  This remains their contractual responsibility, even if they engage consultants or subcontractors to carry out the design on their behalf. 

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Life insurance: can a death benefit cover terminal illness if medical treatment provides a cure?

Life insurance: can a death benefit cover terminal illness if medical treatment provides a cure?

Catherwood v Asteron Life Ltd [2022] NZHC 3296

The High Court has recently denied Mr Catherwood’s claim for breach of a life insurance policy for terminal illness.  The Court addressed the issue of whether the definition of “terminal illness” and “terminally ill” in the policy intended to take into account the effect of available medical treatment on a person’s life expectancy.  The Court held that Asteron Life Limited (Asteron) had not breached the terms of the contract of insurance by denying the terminal illness extension of the life policy, when Mr Catherwood had treatment available to him that meant he was not going to die.

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When does time run on a contribution claim?

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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Introducing Fee Langstone’s Flood Damage Response Team

As a result of the recent flooding and Cyclone Gabrielle weather events, Fee Langstone has assembled an experienced flood damage response team ready to assist clients with claims issues as they arise.  
 
First party property claims are a substantial part of our practice.  We were extensively involved in claims arising out of the Canterbury, Seddon and Kaikoura earthquakes.  We also have significant experience in claims arising out of fire, landslips and other natural disasters. 
 
Our flood response team comprises partners Craig Langstone, Cecily Brick and Virginia Wethey and Special Counsel Andrew Durrant.  We are ready to provide our clients with specific claims advice as well as general policy advice and claims/settlement strategy. 

Chambers 2023 Rankings

Chambers 2023 Rankings

Chambers Rankings 2023

We are very pleased to announce that Fee Langstone was ranked once again as a Band 1 firm for Insurance in the Chambers Asia Pacific Rankings for 2023. This year marks milestones for the firm as it is our eighth ranked year. This year marks Philippa Fee's ninth year ranked for Insurance and Pauline Davies's tenth year ranked for shipping. Pauline was also a contributor to the Chambers Global Practice Guide for Shipping for 2022.

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Focus on directors’ duties:  UK Supreme Court’s “momentous” decision on creditors’ interests

Focus on directors’ duties:  UK Supreme Court’s “momentous” decision on creditors’ interests

BTI 2014 LLC v Sequana SA [2022] UKSC 25.

On 5 October 2022, the UK Supreme Court released its long-awaited and self-described “momentous” decision considering the fiduciary duty of directors to act in good faith in the interests of the company. Specifically, this decision is the first time that the UK Supreme Court (or the House of Lords) has confirmed that directors owe a duty to consider or act in the interests of the company’s creditors if the company becomes or is at risk of becoming insolvent. In so doing, the decision has implications for directors in New Zealand.

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Indemnity focus: meaning of corrosion and resultant physical damage

Indemnity focus: meaning of corrosion and resultant physical damage

MDS Inc v Factory Mutual Insurance Co [2021] ONCA 594

A corrosion exclusion is a common feature of many policies. In this article, we look at a Canadian decision which held that a corrosion exclusion applied to “unanticipated” corrosion at a nuclear facility, leading to a leak, which in turn led to a shutdown. But the shutdown was not resultant physical damage, so that there was no cover for the losses which resulted.

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