Grimshaw Blog

High Court rules on “red zone”

michellem — Mon, 15 Apr 2013 21:32:46 +0000

In O’Loughlin v Tower the High Court held that the “Red Zoning” of a property did not cause any damage or economic loss to the property under the owners insurance contract. The Court found that the insurance company was required to pay for the cost to rebuild the property on sound land outside of the “Red Zone” but did not make any conclusions on what that would cost. The Court rejected Tower’s argument that the foundations could be repaired by injecting grout and held that the onus of proving the viability of a repair was on the insurance company.

Built date

michellem — Sun, 20 Jan 2013 21:01:17 +0000

In Osbourne v The Auckland Council, the Court of Appeal considered the question of when a house was “built” for the purposes of the WHRS Act. The Court found this was when the consented work was complete, which in all but exceptional cases will be when the house passes its final inspection.

Changes to the Real Estate Agents code of contact protects purchasers of leaky homes

michellem — Sun, 20 Jan 2013 20:55:10 +0000

The Real Estate Agents code of contact is being updated in April 2013. The obligation for an agent to disclose hidden defects, when the property is built of materials which are, or may be, at risk of weathertightness defects has been amended to require the agent to obtain confirmation from the client in the form of an experts report that the property does not have defects or to inform the purchaser of the significant risk of the defects and recommend the purchaser seeks expert advice.

Insurance firms wear down owners to accept lower settlements

michellem — Tue, 15 Jan 2013 20:51:45 +0000

The National Business Review has recently reported that insurance companies are wearing down claimants and potentially millions of dollars are being lost as home/business owners are accepting settlements well below what they are entitled to under their policies.

Cancelled amendment to unit entitlement

michellem — Mon, 17 Dec 2012 23:12:44 +0000

In Dominion Finance Group Limited v Body Corporate 382902 the HC cancelled a change to the unit entitlement of an apartment block, made after the Canterbury earthquake, as it was detrimental to a number of the owners. The Court also found that it was more appropriate to value the apartments at the current value than to try and assign a pre earthquake value.

Insurer’s obligation to repair

michellem — Mon, 17 Dec 2012 23:11:24 +0000

In Turvey Trustee Limited v Southern Response Earthquake Services Limited the High Court, on a summary judgment application, found that the insurer’s duty was to meet the cost of constructing a new house of the same style and quality of materials and the property insured. Further the insurer was required to meet the additional costs that are occasioned by the need to comply with the current Building Act and Code.

Estate agent liability for misleading statements

michellem — Mon, 17 Dec 2012 23:09:37 +0000

In Cole v Xiang the High Court, on an appeal, found that statements made by a real estate agent to purchasers of a property that they would not have any problems with the house and they did not need a pre-purchase report were not causative of their loss as they relied on their solicitors advice rather than the statements of the real estate agent.

12 month restraint of trade upheld

michellem — Mon, 17 Dec 2012 23:07:42 +0000

In Taylors Floorcoverings & Furnishings Ltd v Brown the Employment Relations Authority ordered an injunction upholding the employers right to enforce a senior managers 12 month restraint of trade.

Accountants liabilty

michellem — Mon, 17 Dec 2012 23:07:08 +0000

In Belgrave Finance Limited (In Rec & Liq) v Schofield, the High Court rejected a strike out application, found there was a potential claim against a firm of accountants for alleged negligence in auditing the plaintiff company, accountants. The Court found the plaintiffs would not have continued to trade the same way were it not for the alleged negligence.

Builder not liable

michellem — Mon, 17 Dec 2012 23:03:40 +0000

In Auckland Council v Lamb the High Court dismissed the Auckland Council’s claim for contribution against the builder of the property on the basis the Council failed to prove the builder was negligent in installing the window flashings.