Settlement agreement valid


In Annex Devleopments Ltd v IAG New Zealand Ltd & anor [2017] NZHC 706 a property owner, Annex, asked the Court to set aside a settlement agreement it entered into in February 2012 for settlement of a commercial building claim on the ground that it and IAG had made a mistake about the extent of the insurance cover.  Annex settled the claim(s) for $9,430,000.  IAG had previously made progress payments for emergency repairs and lost rent of $229,746.35.  Annex said that it ought to have received about $15M to $16M.  IAG insured the building for replacement with a sum insured of $8,706,824.  Annex said that its cover ought to have reinstated on each event and not when each claim was paid as IAG contended.  The Court disagreed and said that cover reinstated only on payment and only to the extent of the payment.  The Court entered summary judgment for IAG.  The claim continues against the insurance broker that placed the cover, Peter Taylor and Associates Ltd.