Christchurch’s Anglican Diocese has avoided censure for incorrectly using funds from an insurance payout to help pay for the transitional cathedral.<\/p>\n
A High Court judgment released on Wednesday said it was sufficient for the Church Property Trustees (CPT), which holds property on various trusts for the diocese, to repay the $4 million it used from the quake-damaged Christ Church Cathedral insurance payout to construct the new building near Latimer Square.<\/p>\n
The CPT repaid the money with funds diverted from a trust account after an interim High Court judgment in 2012 said the $39m payout for the Christ Church Cathedral could only be utilised for work on the existing structure or its successor in the Square.<\/p>\n
The Great Christchurch Buildings Trust \u201d\u201c a pressure group led by former MPs Jim Anderton and Philip Burdon \u201d\u201c took legal action, believing the CPT should be penalised for its breach.<\/p>\n
Justice Rachel Dunningham, who heard the respective arguments at a hearing in Christchurch in April, said the CPT would not be held liable.<\/p>\n
The CPT was not at fault for under-insuring Christ Church Cathedral because it had based its policy on an estimate that did not reflect the value of the property<\/p>\n