DLA Piper acts for IAG New Zealand and its customers in $12 million Port Hills fires lawsuit
DLA Piper recently acted for insurer IAG New Zealand Ltd and its insured customers, being 70 claimants who suffered property damage in excess of $14 million as a result of the Port Hills fires of February 2017.
In June 2017, High Court proceedings were commenced in Christchurch against power network operator Orion New Zealand Ltd and the owner/operator of the Christchurch Adventure Park. IAG and its customers alleged these two parties were responsible for the further outbreak of fires (originally lit by an arsonist) and subsequent damage.
Staff at the Adventure Park left the chairlift running as the fire approached, resulting in plastic on the chairs catching fire. This led to further outbreaks across the property and ultimately the spread of fire to neighbouring properties.
A 12 week trial against both defendants commenced in August and was completed in late October 2020. A settlement was reached with Orion during the trial. On 31 March 2021, Justice Gendall issued judgment in favour of IAG and its customers against the Christchurch Adventure Park for over $12 million.
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. Issues of interest from the Judge’s findings include:
-
The duty people owe to their neighbours to protect them from fires – even those which they did not start;
-
Liability under the law of nuisance and its distinction from negligence; and
-
The damages ordered and in particular the law of betterment.
The DLA Piper team comprised Peter Leman, Sara Battersby and Charles Henley. Craig Stevens and Brad Cuff were counsel instructed.
