The receiver of failed financier Bridgecorp has argued a $NZ20 million ($17.79 million) claim against a Lloyd’s syndicate should be heard in New Zealand rather than England.

The New Zealand Court of Appeal heard legal arguments last week and the parties expect a decision before Christmas.

Bridgecorp had lenders’ mortgage insurance arranged by failed broker Herbert Insurance, but when insurers refused to pay the claim Bridgecorp’s receiver PricewaterhouseCoopers sought to recover under Herbert’s professional indemnity policy with Lloyd’s.

This year the High Court ruled any dispute between Herbert and its insurer can be heard in New Zealand but any debt payable by the London underwriters is located in England and must be pursued there.