7 Jul 2015
VERO LIABILITY INSURANCE LIMITED v HEARTLAND BANK LIMITED (FORMERLY MARAC FINANCE LIMITED) CA712/2013 [2015] NZCA 288
- Citation
- [2015] NZCA 288
- Court
- Court of Appeal
The Court allowed the appeal because although Atkinson committed dishonest acts from about 2005 onward (concealment and mismanagement), the Judge erred in finding he had the clear intent to cause MARAC loss; rather his intent was to conceal mismanagement to avoid dismissal. Further, MARAC did not prove direct financial loss within the four year discovery period because repayments during that period exceeded advances, so no covered direct loss arose. Consequently the insurer was not liable under the policy and the High Court liability and quantum judgments were set aside.