Peter Collins has been ordered to pay over $530,000 after being held liable for fire damage to neighbouring properties at Port Underwood in the Marlborough Sounds after a tree he was felling knocked over power lines triggering a fire.
Insurance companies IAG New Zealand and Lumleys sued Mr Collins after paying out following the December 2013 fire. Two properties on Tumbledown Bay Road, Port Underwood, were damaged. The High Court was told Mr Collins subsequently left for Queensland. He was served with court papers but did not defend the insurance companies’ claims.
The court was told that the day of the fire Mr Collins was cutting down pine trees. He warned neighbours to evacuate after a fire started telling them one of the trees had fallen on to power lines with electrical arcing igniting dry undergrowth. While he later denied involvement, fire investigators identified a falling tree as the primary cause. One house and its contents were completely destroyed. Rebuild costs were assessed at about $416,500. The insurer paid out $285,000: the sum insured. Sheds, outbuildings, water and sewage reticulation on a second property were damaged. Repairs and the cost of alternative accommodation came to $112,000.
Addition of court ordered interest brought the total damages for negligence to over $530,000.
Insurance companies have a right of subrogation. Having paid out on a claim they take over all legal rights of the person insured and can sue to recover the amount paid out.
K Trust v. Collins – High Court (9.05.18)
18.102