BARRON V HUTTON & ORS HC AK CIV-2010-404-7270

BARRON V HUTTON & ORS HC AK CIV-2010-404-7270

Summary judgment/strike out applications by the second and third defendants were dismissed because the plaintiff's claims raised factual and unsettled legal issues requiring trial; the plaintiff's claim against the fourth and fifth defendants was struck out because policy and precedent (Mortensen/South Pacific) precluded imposing a negligence duty on reporting consultants to an insured claimant in these contractual circumstances; security for costs was ordered in the amount of NZD 100000 payable in two tranches with a stay of proceedings until first tranche paid.

Citation
openlaw-4e6be49a_ace8_47d6_ba20_79c1ed2a08a8.pdf
Parties
Plaintiff: Susan Patricia Barron; First Defendant: Anthony Morris Hutton; Second Defendant: Graeme Trevor Stephens; Second Defendant: Mary Stephens; Third Defendant: IAG New Zealand Limited; Fourth Defendant: Forensic and Industrial Science Limited; Fifth Defendant: Nicholas Garth Powell
Court
High Court
Jurisdiction
New Zealand
Judgment Date
30 August 2012
Procedural Posture
Civil (tort/negligence and Contractual Indemnity; Insurance) / Interlocutory Applications (summary Judgment, Strike Out, Security for Costs)
Outcome
Interlocutory applications partially allowed and partially dismissed: defendants' summary judgment and strike out applications dismissed as to second and third defendants; claim against fourth and fifth defendants struck out; security for costs ordered.
Legal Topics
Summary Judgment, Strike Out, Security for Costs, Directors' Personal Liability, Vicarious Liability, Assumption of Responsibility, Duty of Care, Contribution/indemnity, Hazardous Substances Regulation
Tort Negligence Insurance Law Civil Procedure Corporate/directors' Liability Professional Negligence Summary Judgment Strike Out +7 more

Case Brief

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Parties

Susan Patricia Barron

Plaintiff

Anthony Morris Hutton

First Defendant

Graeme Trevor Stephens

Second Defendant

Mary Stephens

Second Defendant

IAG New Zealand Limited

Third Defendant

Forensic and Industrial Science Limited

Fourth Defendant

Nicholas Garth Powell

Fifth Defendant

Procedural Posture

Civil (tort/negligence and Contractual Indemnity; Insurance) / Interlocutory Applications (summary Judgment, Strike Out, Security for Costs)

Legal Issues

  1. 1 Whether summary judgment or strike out was appropriate for defendants
  2. 2 Whether company directors (second defendants) owed a personal duty of care or assumed responsibility for negligent acts of employee
  3. 3 Whether the third defendant insurer had properly denied further indemnity and whether analytical chemists (fourth and fifth defendants) owed a duty of care to the plaintiff

Ratio Decidendi

Summary judgment/strike out applications by the second and third defendants were dismissed because the plaintiff's claims raised factual and unsettled legal issues requiring trial; the plaintiff's claim against the fourth and fifth defendants was struck out because policy and precedent (Mortensen/South Pacific) precluded imposing a negligence duty on reporting consultants to an insured claimant in these contractual circumstances; security for costs was ordered in the amount of NZD 100000 payable in two tranches with a stay of proceedings until first tranche paid.

Court Disposition

Interlocutory applications partially allowed and partially dismissed: defendants' summary judgment and strike out applications dismissed as to second and third defendants; claim against fourth and fifth defendants struck out; security for costs ordered.

Orders

  • Summary judgment applications by second and third defendants dismissed
  • Strike out application by second defendants dismissed