Napier City Council v Local Government Mutual Funds Trustee Ltd - [2022] 3 NZLR 528

Contract — Interpretation — Approach to extrinsic evidence of meaning — Evidence Act 2006 ss 7 and 8.

Insurance — Exclusion clause — Scope of exclusion clause when loss partly excluded and partly included.

Insurance — Cover for settlements — Insurer wrongly declined cover — Insured settles liability to third-party before challenging insurer’s decision — Ability of insurer to challenge settlement reached by insured — Repudiation of contract not required — Question whether settlement reasonable — No requirement to establish “at trial” liability — Approach when settlement involved covered and uncovered elements.