New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Assignment of insurance proceeds

Legal area

Court

31 Jul 2019

PVG SECURITIES TRUSTEE LTD v 100 INVESTMENTS LTD [2019] NZHC 1847

Citation

(2019) 20 NZCPR 280
Court

High Court

Section 183(4) of the Property Law Act 2007 meant that when PFSL validly assigned the insured rights in the mortgagee sale to 100 Investments, any equitable charge PVG claimed over the insurance proceeds was extinguished and the purchaser took the rights free of that subsequent encumbrance; accordingly the plaintiff's declarations were refused.
11 Dec 2018

100 INVESTMENTS LIMITED v IAG NEW ZEALAND LIMITED [2018] NZHC 3244

Citation

[2018] NZHC 3244
Court

High Court

100 Investments is entitled to the outstanding insurance proceeds because PFSL, as first mortgagee, held an assignable accrued contractual right to insurance proceeds (included as 'land proceeds' in the mortgage) at the time of damage and validly transferred those rights to 100 Investments by exercising its power of sale; liquidation of the mortgagor did not affect those secured rights and the purchaser takes the property and proceeds free of prior mortgages, so 100 Investments may settle and retain the insurance proceeds.