Decision Reserved In Barnett’s Appeal

Press, Volume CIV, Issue 30725, 14 April 1965, Page 8

Decision Reserved In Barnett’s Appeal

INew Zealand Press Association)

WELLINGTON, April 13

The Court of Appeal today reserved its decision on the appeal by Arthur Barnett, Ltd., of Dunedin, against a decision of Mr Justice Henry on November 18 last.

The case arose out of the fire at Arthur Barnett’s store in December, 1959, which caused £650,000 worth of damage. The court was told that the

The court was told that the insurers and respondents in the case, the National Insurance Company of New Zealand, accepted liability for two policies totalling £370,000.

National Insurance also paid for partial loss under a third policy and in all paid £469,472 to Barnetts. Barnetts then sued the Dunedin Fire Board for £320,000 later increased to £652,774, to include all losses, insured and uninsured, the Court was told. The insurance company claimed the right to be indem-

nified from any damages that Barnetts might claim from the Fire Board, but Barnetts argued that any right the insurance company might have under the contract was nullified since its implied rejection of the contract. Mr Justice Henry rejected this argument and held that the insurance company need not insist that Barnetts sue the Fire Board and thus their refusal to do so was not a breach of the contract.

Mr Justice Henry held that while Barnetts were free to sue the Fire Board, if it did so, then it was subject to the insurance company’s claim for repayment of the insurance money it had received.