No Supreme Court Appeal In Reinstatement Cases


In QBE Insurance (International) Ltd v Wild South Holdings Ltd [2014] NZCA 447 the Court of Appeal dealt with 3 appeals about the interpretation of reinstatement clauses in commercial insurance policies.  QBE Insurance filed an application for leave to appeal to the Supreme Court, but later abandoned it.  Vero Insurance did not seek leave to appeal.  Lloyds Underwriters applied for leave to appeal to the Supreme Court, however, in the judgment released 16 December 2014 in Certain Underwriters at Lloyds & anor v Crystal Imports Ltd [2014] NZSC 186 the Supreme Court refused leave to appeal.  The underwriters wished to argue that the effect of the reinstatement clause is that cover reinstates only from the date on which payment is made by the insurer for the loss, rather than from the date of the event which caused the loss, as the Court of Appeal found.  The Supreme Court decided that the argument did not meet the test(s) required for leave in that there had been no miscarriage of justice and there was not point of principle or issue of commercial significance.