1 Jul 2016
NEW ZEALAND FIRE SERVICE COMMISSION v LEGG [2016] NZHC 1492
- Citation
- [2016] 3 NZLR 685
- Court
- High Court
Plaintiffs entitled to judgment; insurers failed to prove exclusion or breach sufficient to deny cover. Exclusion wording "arising out of or in connection with" must be interpreted to require an effective causative nexus between the non-farming business and the insured liability; AMI did not prove such causation on the balance of probabilities. Lumley could not establish breach of the reasonable precautions clause to the standard of gross recklessness. Where ambiguity exists, contra proferentem operates against the insurer. Wayne Tank does not operate to deny indemnity without clear causative…
- Forest and rural fires act 1977 s43
- Insurance policy exclusion clauses
- Reasonable precautions condition
- Causation in exclusion clauses
- Wayne tank principle
- Insurance law reform act 1977 s11