Insurance proceeds division – lessor/lessee


In 134 Ltd v JRF Holdings Ltd [2013] NZHC 938 the High Court had to decide on the division of proceeds of an insurance policy between the lessee and lessor after the demolition of the leased building at 134 Victoria Street.   The tenant, JRF, had spent significant money on improvements to the property and a policy endorsement recorded JRF’s interest in the improvements.  Heath J decided that JRF was entitled to a declaration that JRF had an interest in the insurance policy to the extent of the $225,000 which was the value of the lease to JRF lost by the earthquakes and demolition of the building.