The ruling has “wide-ranging ramifications for the legal and insurance industry,” the firm says
DLA Piper has helped insurer IAG New Zealand to victory in a $12m lawsuit involving the February 2017 Port Hills fires.
In the suit, IAG, along with 70 affected customers, claimed that power network operator Orion New Zealand Ltd and the owner/operator of Christchurch Adventure Park facilitated the spread of the fires, which had initially been started by an arsonist. The chairlift had been left running by Christchurch Adventure Park staff, and the ignition of the plastic chairs caused the fire to spread across the park and to the surrounding properties.
The damage dealt to the claimants’ properties was valued at over $14m.
The suit was taken to the High Court in Christchurch in June 2017. The trial began in August and lasted for 12 weeks; during this period, Orion agreed to a settlement.
On 31 March, High Court Justice Warwick Gendall ruled in favour of IAG and the 70 homeowners, who will be able to claim more than $12m in damages.
“This was a significant recovery claim on behalf of 70 homeowners. It dealt with a number of complex legal issues and has resulted in a judgment with wide-ranging ramifications for the legal and insurance industry,” DLA Piper said.
The firm outlined the following issues of interest from Gendall’s findings:
DLA Piper’s team on the transaction consisted of Wellington partner Peter Leman, senior associates Sara Battersby and Charles Henley. The counsel instructed were Craig Stevens and Brad Cuff.
