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Southern Response – post Avonside Holdings- slow payer

On 1 October 2014 the Court of Appeal said that Southern Response was liable to pay professional fees of 10% and a contingency of 10% as part of a rebuild cost; costs in the Court of Appeal and that the High Court order of “no costs” must change.  Southern Response has not yet paid the increased judgment amount of a further $214,934.14.  A statutory demand was served on it on 23 October 2014.  Southern Response eventually paid the costs in the Court of Appeal of $17,780 only after being served with a statutory demand.  Notwithstanding the Court of Appeal directive about costs in the High Court and the success of […]

Sum insured includes EQC payments

By the judgment in Firm PI 1 Ltd v Zurich Australian Insurance Ltd & anor [2014] NZSC 147 delivered 15 October 2014 the Supreme Court by a 3:2 majority decided that the sum insured of $12.95M for the Salisbury Apartments included any amounts due from EQC which in this case was $6.8M.  The insured and its broker argued that the sum insured was additional to the amount due from EQC.  The actual replacement cost of the complex was apparently about $25M.  The majority placed emphasis on the sum insured being based upon a replacement valuation and that the insurer had calculated the premium based on the net figure which was […]