New Zealand’s highest court will determine entitlement to directors’ and officers’ (D&O) cover held by directors of failed finance company Bridgecorp, after the company’s receivers were last week granted leave to challenge last year’s Appeal Court decision.

The case may be heard in the Supreme Court in about July, sources told insuranceNEWS.com.au.

Before that New Zealanders will be looking to the NSW Court of Appeal, which has reserved its decision on the Great Southern D&O case, in which six insurers have asked for a ruling on entitlement to policy proceeds when there is a claim by a third party.

Plantation company Great Southern has a liquidator appointed and is subject to legal actions in Victoria and WA.

While neither New Zealand nor Australian courts are obliged to follow decisions by the other, the outcome of either case is likely to be used as an example in the other jurisdiction.

In 2011 the New Zealand High Court ruled Bridgecorp’s receiver had priority over the company’s directors in accessing D&O policy proceeds, meaning the directors could not use the funds for legal fees.

The Court of Appeal overturned that decision in December.

An action on D&O cover involving the failed carpet manufacturer Feltex will be heard at the same time as Bridgecorp.