14 Mar 2016
PRATTLEY ENTERPRISES LIMITED v VERO INSURANCE NEW ZEALAND LIMITED [2016] NZCA 67
- Citation
- [2016] 2 NZLR 750
- Court
- Court of Appeal
The Court held the interim settlement agreement, by its clear and general language and contextual purpose of finality, allocated to Prattley the risk of any mistake about its entitlement under the policy so relief under the Contractual Mistakes Act 1977 is precluded; additionally Prattley's expert evidence was inadmissible/unreliable due to partiality and unsupported methodology; on substantive insurance law the appropriate measure of indemnity on destruction in these policy terms is depreciated replacement cost but the settlement amount fell within the relevant range and therefore the settle…
- Contractual mistakes act 1977 s6(1)(c) and allocation of risk
- Measure of indemnity on destruction (market value v depreciated replacement cost)
- Settlement and release clauses
- Admissibility and impartiality of expert evidence
- Automatic reinstatement of cover
- Assessment of destruction and loss