12 December 2016

Insurance: Lyttelton Port v. Aon

Aon’s dawdling start in defence of Lyttelton Port’s $184.8 million dollar claim alleging negligently arranged insurance has raised concerns in the High Court.
Badly damaged in the 2011 Christchurch earthquake, Lyttelton Port was paid $449.2 million following an out-of-court settlement with its insurers for earthquake damage, interruption to port construction works and business interruption losses.  It then sued broker Aon alleging a failure to arrange complete cover.  Aon denies liability.
Prior to trial, Aon seeks disclosure of documents and reports it says are relevant to the claim.  Lyttelton Port has a database of some eight million documents.  The breadth of information demanded by Aon requires discovery to progress in stages with Aon making further requests after inspecting documents previously made available.  It already has access to 6000 Lyttelton Port documents, including 500 reports.
Declining Aon’s request for further detailed discovery, Associate-judge Osborne expressed concern that Aon had yet to arrange for experts to review and to analyse technical information in documents it already has.  Lyttelton Port has legitimate concerns about delays in getting the case to trial, he said.
Lyttelton Port v. Aon – High Court (12.12.16)

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