Firm Must Claim Total Fire Loss

Press, Volume CIII, Issue 30602, 19 November 1964, Page 3

Firm Must Claim Total Fire Loss

(New Zealand Press Association) DUNEDIN, November 18. Arthur Barnett. Ltd., was not justified in claiming against the Dunedin Metropolitan Fire Board for only the uninsured portion of the damage which occurred in its fire in 1959, Mr Justice Henry ruled today.

“No fact has been proved which justifies Arthur Barnett, Ltd., omitting from its action the amount of the insured loss,” his Honour said. Earlier, counsel told the Court that a claim for the full amount of the loss could be as high as £732,216, while the uninsured portion was £250,970.

Mr Justice Henry was giving his decision in an originating summons brought by Barnetts which sought a declaratory order against the National Insurance Compny. Barnetts alleged that National Insurance had repu-

diated its contract in refusing to contribute to the costs of the action against the board. Therefore, Barnetts claimed, it had no further obligation to protect the interests of National Insurance.

Mr Justice Henry found that National Insurance had not repudiated the contract. Barnetts was not entitled to call upon National to pay costs, although it would be entitled to recoup a share of the costs from National if the action against the fire board were successful. His Honour pointed out that the right of recovery of damages from the board would be exhausted by one action.