The New Zealand Supreme Court last week finished hearing the Bridgecorp case on directors’ and officers’ (D&O) cover.

Legal experts expect a decision from the country’s highest court after February next year.

The five judges must decide who has priority over D&O policy proceeds – Bridgecorp directors wanting to fund their legal defence or the receiver with a claim against the failed company.

The ruling is hoped to signal the end of the Bridgecorp saga, which began in 2011 when the High Court decided the receiver had priority accessing D&O policy proceeds, meaning directors could not use the money.

Several Australian jurisdictions, including NSW, have a law similar to the one on which that decision was based. Insurers on both sides of the Tasman were forced to rewrite D&O policies to ensure company directors and executives could fund legal defence costs.