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Tonight there was a great Supreme Court victory for homeowners affected by the Christchurch earthquake.
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The landmark court decision allows 3,000 homeowners to take massive class action against state insurer Southern Response. Source: 1 NEWS
The landmark decision allows 3,000 homeowners to take massive class action against state insurer Southern Response.
Last year, the Court of Appeals ruled that a “opt-out” class action lawsuit could be brought against Southern Response on behalf of the former policyholders.
The last Supreme Court battle was Southern Response’s attempt to overturn that.
Today, the court ruled that the earlier decision would stand, overturning Southern Response’s appeal.
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It could end up costing the government earthquake insurance company tens of millions of dollars. Source: 1 NEWS
GCA Lawyers, the law firm fighting for the class action lawsuit to stand, says the decision is “hugely significant.”
“It confirms that there is a legal avenue for ordinary people to access justice and hold powerful corporations to account,” the firm told 1 NEWS in a statement today.
The class action lawsuit alleges that Southern Response misled and misled its policyholders when it settled claims prior to October 1, 2014 by sending individuals a cost estimate with no material cost elements.
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The practice, described by the Superior Court as misleading and misleading, was widely used by the government-owned Southern Response insurer. Source: 1 NEWS
As it is an opt-out case, it means that almost all policyholders will be represented, rather than requiring people to actively register to be represented.
Earlier this year, it was ruled that the state insurer needed to return damages to Karl and Alison Dodds, after the Superior Court found they had been misled about the cost of rebuilding their earthquake-damaged home.
If used as a precedent in the class action case, it could leave the government on the hook for up to $ 700 million in payments to Christchurch homeowners.
