NELSON FORESTS LIMITED V THREE TUIS LIMITED AND ANOR HC NEL CIV-2010-442-000084

NELSON FORESTS LIMITED V THREE TUIS LIMITED AND ANOR HC NEL CIV-2010-442-000084

On the undisputed facts the deposited ashes were the cause of the fire for the purposes of the insurance issue, and the policy only covered the farming business declared to the insurer; the accident arose from undeclared tourist accommodation activity and neither the special extensions nor s 11 ILRA operate to...

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Citation
openlaw-8df1ee86_1bbf_41f6_94eb_b7d69e3a3605.pdf
Parties
Plaintiff: Nelson Forests Limited; Defendant: Three Tuis Limited; Defendant: Stephen Garnett; Third Party: Tower Insurance Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
9 December 2010
Procedural Posture
Civil / Third Party Summary Judgment (high Court Rules R12.2(2) Application)
Outcome
Judgment entered for third party Tower Insurance Limited against second defendant Stephen Garnett
Legal Topics
Coverage Interpretation, Contra Proferentem, Causation of Fire, Summary Judgment, Insurance Law Reform Act S11
Insurance Law Tort Law Contract Law Property Law Statutory Liability (forest and Rural Fires Act) Coverage Interpretation Contra Proferentem Causation of Fire +2 more

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Parties

Nelson Forests Limited

Plaintiff

Three Tuis Limited

Defendant

Stephen Garnett

Defendant

Tower Insurance Limited

Third Party

Procedural Posture

Civil / Third Party Summary Judgment (high Court Rules R12.2(2) Application)

Legal Issues

  1. 1 Whether the third party Tower Insurance is entitled to summary judgment against the second defendant
  2. 2 Whether the ashes disposed by the second defendant indisputably caused the fire
  3. 3 Whether the insurance policy's Section 4 covers the event as an accident 'in connection with' the declared farming business

Ratio Decidendi

On the undisputed facts the deposited ashes were the cause of the fire for the purposes of the insurance issue, and the policy only covered the farming business declared to the insurer; the accident arose from undeclared tourist accommodation activity and neither the special extensions nor s 11 ILRA operate to create cover, so Tower Insurance is entitled to summary judgment against Garnett.

Court Disposition

Judgment entered for third party Tower Insurance Limited against second defendant Stephen Garnett

Orders

  • Judgment entered for third party Tower Insurance Limited against second defendant Stephen Garnett
  • Costs and disbursements which otherwise would have been ordered against the second defendant are $18,828 (pursuant to s 40(5) Legal Services Act 2000)