16 May 2013
MCLEAN, MCKEOWN AND BUTLER V IAG NEW ZEALAND LIMITED HC CHCH CIV 2012-409-002284
- Citation
- openlaw-c478837b_85f4_4dbc_b0bb_0f7131f87863.pdf
- Court
- High Court
The court held that 'present value', defined in the policy as 'the reasonable cost to repair or replace, less an allowance for depreciation', must be understood to include reasonable professional and compliance costs that would be necessary to replace the home; the policy wording, including express coverage of professional fees when rebuilding and the clause capping liability 'inclusive of fees and other costs', supports reading those fees into the assessment of present value, and the indemnity principle does not prevent contracting parties from so defining loss.