Zurich has avoided making a $NZ12.95 million ($11.66 million) payout after winning a court battle over a Christchurch apartment block destroyed in the February 2011 earthquake.

The Supreme Court of New Zealand found the insurer must instead pay $NZ6.15 million ($5.54 million).

Salisbury Park Apartments’ body corporate – through its broker, then known as ACM – had insured the block for $NZ12.95 million.

The complex would now cost $NZ25 million ($28.59 million) to replace.

After the quake the body corporate was paid $NZ6.8 million ($6.12 million) by the Earthquake Commission (EQC).

It successfully claimed in the High Court that Zurich should pay $NZ12.95 million on top of that, but this decision was reversed in the Court of Appeal.

The Supreme Court has sided with the Court of Appeal, finding Zurich should contribute the sum insured minus the EQC payment.

The case turned on the interpretation of policy wording and prompted a split decision, with two out of the five judges favouring the body corporate’s argument.

The body corporate has an alternative claim pending that the cover limit had in fact been lifted to $NZ100 million ($90 million).