NEW ZEALAND Law and Practice Contributed by: Aaron Sherriff, Tanya Wood and Nick Laing, Duncan Cotterill
• whether the parties, witnesses and evidence are located in New Zealand; • what the governing law of the insurance contract is; • what relief a New Zealand court could grant; and • whether overseas proceedings are already under way. 9.3 Litigation Process Insurance litigation in New Zealand is typically con- ducted in the High Court (usually for claims over NZD350,000). The District Court may also hear insur- ance disputes (for claims up to NZD350,000). Most insurance litigation is resolved through private mediation before it reaches a full hearing in court. Alternatively, a judge may assist parties at a judicial settlement conference. A typical commercial insurance case heard on the ordinary track in the High Court will take between two and three years from filing to reach a full hearing, assuming there are no significant interlocutory appli- cations to be heard. Complex proceedings will take longer. There is a fast track available, but this is not regularly used. A party generally has the right (without leave) to appeal to the Court of Appeal, and, in turn (but with leave), to the Supreme Court. Appeals or applications for leave to appeal must generally be made within 20 working New Zealand judgments are enforced through the civil courts. The most common form of enforcement against a domestic commercial party is the issuance of a statutory demand and then liquidation if the party fails to pay. Foreign judgments may be enforced in New Zealand, but require a judicial process in New Zealand first: • Australian civil court judgments against someone in New Zealand may be registrable in New Zealand and enforced in New Zealand under the Trans- Tasman Proceedings Act 2010; days of the decision being made. 9.4 Enforcement of Judgments
• New Zealand has reciprocal agreements with cer- tain countries under the Reciprocal Enforcement of Judgments Act 1934, which allows judgments (from some common law countries) to be enforce- able in New Zealand; and • other judgments, such as those from the United States of America, may be enforceable at common law in New Zealand, but require proving in a New Zealand court first. 9.5 Enforcement of Arbitration Clauses Arbitration clauses in commercial insurance and rein- surance contracts are enforceable in New Zealand. Arbitration clauses are not binding in consumer insur- ance. An arbitration agreement may be made orally or in writing. It is typically contained as a clause in a con- tract, or in a separate agreement. No form of words is specifically required under the Arbitration Act 1996 (the “Arbitration Act”). In New Zealand, the courts generally endeavour to give effect to the intention of parties to refer disputes to arbitration. Courts will strive to give arbitration clauses a broad interpretation. This policy reflects the objective of the Arbitration Act, which encourages the use of arbitration in New Zealand to resolve disputes. Under the Arbitration Act, court intervention in the conduct of arbitration is limited. The High Court may intervene in the arbitration process to make interim orders: • where the parties cannot agree on the appointment of an arbitrator; • to determine the jurisdiction of the arbitral tribunal; and • on questions of law on an appeal from an arbitral tribunal. 9.6 Enforcement of Awards Regardless of the country in which it was made, an arbitral award must be recognised as binding. On a written application to the District Court (for awards of less than NZD350,000) or the High Court (for awards of NZD350,000 or more), arbitral awards must be enforced by entry as a judgment in terms of the award,
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