Canterbury Earthquake Recovery Bill

40  Compensation for demolition of buildings

• (1) If the chief executive demolishes a dangerous building,—

  • (a) the Crown is not liable to compensate the owner or any tenant or other occupier of the building; and

  • (b) the chief executive may recover the cost of demolition from the owner.

  (2) If the chief executive demolishes a non-dangerous building in order to demolish a dangerous building,—

  • (a) the Minister may, in his or her discretion, agree to compensate the owner or any tenant or other occupier of the non-dangerous building for a loss resulting from the demolition of the non-dangerous building, if—

    • (i) the loss is insured or partially insured and the Minister is satisfied that the owner or tenant or other occupier has taken all reasonable steps to recover the loss under the contract of insurance within a reasonable timeframe (as determined by the Minister); and

    • (ii) the owner or tenant or other occupier assigns their interest under the contract of insurance, in so far as the contract allows, to the Crown in the form required by the Minister; and

  • (b) the chief executive may not recover the cost of demolition from the owner or anyone else.

  (3) If the chief executive demolishes a non-dangerous building and subsection (2) does not apply,—

  • (a) the Crown is liable to compensate the owner or any tenant or other occupier of the building; and

  • (b) the chief executive may not recover the cost of demolition from the owner or anyone else.

  (4) Claims under this section must be made and determined in accordance with this section and subpart 5.

  (5) If the owner or tenant or other occupier assigns their interest under the contract of insurance to the Crown under subsection (2)(a)(ii), the Crown succeeds to all rights, entitlements, and benefits that the owner or tenant or other occupier has or may have against the insurer.