Council pursues $475 million claim against Aon
Christchurch City Council is seeking to recover $NZ528 million ($475 million) in damages from Aon New Zealand, which intends to defend the action.
While the council is prevented under New Zealand law from disclosing details of the claim, they feature in Aon’s mandatory quarterly report to the US Securities and Exchange Commission.
The report says the council invoked the Arbitration Act last month to pursue the claim, which relates to the 2015 settlement of losses from the 2010/11 Canterbury earthquakes.
Aon provided insurance broking services in relation to the council’s material damage and business interruption program.
“[The council] contends that acts and omissions by Aon caused [the council] to recover less in that settlement than it otherwise would have,” the report says. “Aon believes that it has meritorious defences and intends to vigorously defend itself against these claims.”
The council declined to comment when contacted by insuranceNEWS.com.au, citing its requirement to comply with the statutory obligation of confidentiality in the Arbitration Act.