ANNEX DEVELOPMENTS LTD v IAG NEW ZEALAND LTD and ANOR [2017] NZHC 706

ANNEX DEVELOPMENTS LTD v IAG NEW ZEALAND LTD and ANOR [2017] NZHC 706

Clause E/F's plain and contextual meaning requires actual payment to trigger reinstatement of the sum insured; payments that 'ought to have been made' do not reinstate cover; the settlement expressly preserved progress payments in addition to the settlement sum so no substantially unequal exchange arose; summary...

Source-derived case information.

Citation
[2017] NZHC 706
Parties
Plaintiff: Annex Developments Limited; First Defendant: IAG New Zealand Limited; Second Defendant: Peter J Taylor & Associates Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
11 April 2017
Procedural Posture
Insurance and Contract Dispute (contractual Mistakes Act) / Summary Judgment Application
Outcome
Summary judgment for first defendant (IAG New Zealand Limited). Plaintiff's first and second causes of action dismissed; claim against second defendant adjourned.
Legal Topics
Contractual Mistake, Reinstatement Clause, Indemnity Valuation, Settlement Agreement, Summary Judgment, Breach of Duty by Insurance Broker
Insurance Law Contract Law Equity Civil Procedure Contractual Mistake Reinstatement Clause Indemnity Valuation Settlement Agreement +2 more

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Parties

Annex Developments Limited

Plaintiff

IAG New Zealand Limited

First Defendant

Peter J Taylor & Associates Limited

Second Defendant

Procedural Posture

Insurance and Contract Dispute (contractual Mistakes Act) / Summary Judgment Application

Legal Issues

  1. 1 Whether policy reinstatement clause operates when an insurer ought to have paid an interim/indemnity sum rather than only on actual payment
  2. 2 Whether insurer was obliged to pay the indemnity value (Ford Baker valuation) prior to 13 June 2011
  3. 3 Whether unpaid interim claims ought to have been paid within a reasonable time and whether the mutual mistake led to a substantially unequal exchange under s 6 Contractual Mistakes Act 1977

Ratio Decidendi

Clause E/F's plain and contextual meaning requires actual payment to trigger reinstatement of the sum insured; payments that 'ought to have been made' do not reinstate cover; the settlement expressly preserved progress payments in addition to the settlement sum so no substantially unequal exchange arose; summary judgment entered for first defendant dismissing plaintiff's first and second causes of action.

Court Disposition

Summary judgment for first defendant (IAG New Zealand Limited). Plaintiff's first and second causes of action dismissed; claim against second defendant adjourned.

Orders

  • Costs reserved; if not agreed, defendant(s) to file memoranda within specified timeframes