Abstract
Flooding is New Zealand's most frequent natural hazard, the cost of which is outdone only by the recent Canterbury earthquakes. Local authorities are the bodies primarily tasked with protecting communities against flooding through a range of measures including physical works such as stopbanks. This article explores the extent to which a local authority can be liable in tort where those physical works fail, causing damage. Direct liability and non-delegable duties are discussed, the latter addressing whether a local authority can nevertheless be liable having outsourced the construction of flood works to independent contractors. Additionally, whether local authorities should be liable for such damage or whether individual property owners ought to protect their own interests through insurance is discussed. This article recommends that property owners should purchase private insurance, but that local authorities should remain liable at least for their own negligence.
Highlights
Flooding is New Zealand's most frequent natural hazard with climate change likely to increase both the intensity and frequency of major flooding events.[1]
In the right circumstances, a local authority can be liable for flood damage, is it appropriate that they should be? In reality, are they covered by other policies such as insurance? Should liability be strict, or merely fault-based? This discussion involves three key players: residents and businesses who suffer harm; councils; and the insurance industry
Councils and communities have a real interest in protecting against flooding as best they can, but some of these measures will eventually fail, either because natural forces exceed the limits of the works, or because of problems with the protections themselves
Summary
Flooding is New Zealand's most frequent natural hazard with climate change likely to increase both the intensity and frequency of major flooding events.[1]. The 2011 Canterbury earthquakes have caused rivers to become shallower and wider, making them more prone to flooding.[7] many areas in Christchurch have experienced regular flooding as often as nine times in the space of just three years.[8] As recently as July 2014, torrential rain falling over two weeks in Northland caused extensive flooding affecting businesses and residents.[9] The cost of storms (including floods) to the insurance industry in 2014, up to October, exceeded $142 million.[10]. These include weather forecasting, insurance, recovery plans, and the construction of physical works such as stopbanks and culverts. In respect of physical works, money tends to be allocated by councils in respect of specific projects, rather than a single "flood protection" budget drawn from on an as-needs basis. An analysis of whether councils should be liable is undertaken with a brief evaluation of current practices of insuring against loss for both homeowners and local authorities. This article concludes that, while local authorities can be liable for flooding in some circumstances, it is preferable for homeowners to purchase private insurance rather than extend local authority liability further than the current state of the law
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
