New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Defective products exclusion

Legal area

Court

8 Sept 2010

ARROW INTERNATIONAL LIMITED V QBE INSURANCE (INTERNATIONAL) LIMITED CA CA426/2009

Citation

openlaw-f704b475_68e4_454f_8b4a_9cc96b6b1190.pdf
Court

Court of Appeal

On the unchallenged factual findings the physical damage which gave rise to Arrow's legal liability had occurred before the QBE policy commenced on 30 May 2002; therefore the compensation was not consequent upon damage happening during the QBE policy period and QBE owed no indemnity; appeal dismissed.
23 Jun 2009

ARROW INTERNATIONAL LIMITED V QBE INSURANCE (INTERNATIONAL) LIMITED HC WN CIV 2007-485-74

Citation

openlaw-72359b20_8fcb_46dd_93bb_a3c21d53a3e9.pdf
Court

High Court

The policy required physical damage to have 'happened' during the policy period; that phrase denotes an injury-in-fact trigger (a single point on the continuum of latent progressive damage). On the evidence fungal/microbiological damage that altered the timber's physical state and impaired its usefulness occurred before 30 May 2002, so the 2002-05 policy did not cover Arrow's liability and the claim is dismissed.