The Bridgecorp case will near the end of the line on Thursday, as New Zealand’s highest court hears arguments on access to directors’ and officers’ (D&O) policy proceeds.

The Supreme Court is expected to take up to two days to decide who has priority – directors wanting to fund their legal defence, or the receiver with a claim against the failed company.

The five judges’ ruling will be keenly awaited on both sides of the Tasman.

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

NSW has a similar law to the one on which that decision was based. The New Zealand ruling forced insurers to rewrite D&O policies, particularly where third-party claims might exceed policy limits.

New Zealand’s Court of Appeal overturned the original decision last December, and the receiver sought leave to appeal to the Supreme Court.

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