Southern Response quake claimants withdraw class action

Tuesday, 15 May 2018

Unhappy earthquake claimants protest at the premises of Southern Response in 2016.

A group of Southern Response insurance claimants will forgo their day in court and take their earthquake damage claims to a resolution service led by a retired High Court judge.

Government-owned claims management company Southern Response and lawyers for the class action claimants announced on Tuesday they had reached agreement and would not go to court.

Southern Response has reached agreement with a class action group led by Grant Cameron, pictured, on how their claims will be heard.

The 24 policy holders had alleged Southern Response engaged in a strategy of delays and misleading conduct to try and minimise payouts. They had sued for breach of faith and breach of contract.

Southern Response denied the allegations. The two parties met in the lead up to an approaching court date after Earthquake Commission Minister Megan Woods asked both parties to enter mediation.

Southern Response policy holder Peter Glasson, pictured at the time of his hunger strike last month ,with his wife, Anne Glasson.

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Under the new process announced on Tuesday, retired High Court judge Sir Graham Panckhurst will lead discussions and possible settlements of individual claims. If the parties cannot reach an agreement, Panckhurst will determine the entitlements.

Group members will also be able to address how Southern Response handled their individual insurance claims as part of the process.

The group's lawyer, Grant Cameron, said they had accepted the need to withdraw their allegations and was satisfied each member would have their individual claims heard.

'The group is relieved that their claims will be resolved by an independent and fair process, especially so long after the claims arose,' he said.

Southern Response's chief executive Anthony Honeybone said the agreed process would be 'be quicker and simpler and should be better for both parties'.

'We are also pleased the group has withdrawn its 'strategy' allegation. We have always seen it as baseless and it is appropriate that it has been withdrawn.'

The group first lodged court action with 47 members in 2015, but faced opposition from Southern Response. The Court of Appeal ruled in October that the case could be heard in the High Court.

The claimants had alleged, according to court documents, that Southern Response had a deliberate strategy designed to minimise its financial claims liability, including relying on builders' quotes in preference to quantity surveyors' reports.

Southern Response was set up to settle insurance claims for customers of failed insurer AMI after the Canterbury earthquakes.

It hit the headlines earlier this year when it was revealed to have hired Auckland security firm Thompson and Clark Investigations to spy on customers with outstanding Canterbury insurance claims.

In April, Southern Response policy holder Peter Glasson ended an eight-day hunger strike after the company agreed to enger mediated talks on his claim.