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PHOTO: LIZ MCDONALD/STUFF Riverlaw, on Aynsley Tce in Christchurch, pictured before it was wrecked by the earthquakes.

The High Court has told Tower Insurance it cannot charge a homeowner more than $400,000 interest on interim earthquake payments made while he awaits full settlement.

Paul Myall’s historic Riverlaw mansion, at the foot of Murray Aynsley hill in Christchurch, was demolished after the Canterbury earthquakes. He has since bought a home in Australia.

Justice Rachel Dunningham ruled that Tower was “not entitled” to deduct use-of-money interest on the interim payments before settling the balance of Myall’s claim. A previous court order set the final settlement amount at $5.27 million, of which Tower had paid just under $3m.

READ MORE VIA STUFF