Southern Response unsure if it will appeal major court decision

Wednesday, 11 September 2019

The Southern Response court case now looks like paving the way for an overhaul of the justice system (video first published in September 2018).

Southern Response is yet to decide whether it will appeal a significant court case that found the Crown-owned insurance claims company engaged in misleading and deceptive conduct.

In mid-August, the High Court judged Southern Response's policy of producing two differing detailed repair/rebuild assessments, or DRAs, but only sharing one with the customer, misrepresented the customers' entitlements.

Southern Response has until Friday to decide whether they will appeal, which some see as precedent-setting for others who settled while Southern Response used two DRAs.

A High Court ruling found Southern Response engaged in misleading and deceptive conduct.

Chief executive Anthony Honeybone said the company was considering information and external legal advice relating to the case and its implications, and working with other relevant Crown agencies to reach a decision on whether to appeal by the deadline.

**READ MORE:

Southern Response chief executive Anthony Honeybone says the Crown insurance company is considering advice and working with Crown agencies to decide if it will appeal by the Friday deadline. (file photo)

* Southern Response engaged in misleading and deceptive conduct, High Court finds

* Gerry Brownlee says Southern Response ordered to behave in a 'fair and reasonable manner'

Lawyer Peter Woods says if Southern Response does appeal, it would be unfair to place the cost and stress of the appeal on the plaintiffs. (file photo)

* Government-owned Southern Response facing multimillion-dollar legal action**

'It would be inappropriate for Southern Response to make any further comment on this case before that decision is made.'

Peter Woods, a partner at law firm Anthony Harper and one of the lawyers for the plaintiffs, said the judgment was not a new law and did not create any new law that had wide-reaching impacts beyond Southern Response so an appeal was not warranted.

He said if Southern Response was considering an appeal because of concern over exposure to other cases, such as the Grant Cameron-led class action over the same issue, it was unfair to place the cost and associated stress of the appeal on the plaintiffs Karl and Alison Dodds alone. Southern Response should offer to cover the Dodds' costs of any appeal, he said.

Its been estimated 3000 or more Southern Response customers may be eligible for the class action. If they all signed up, it has been estimated the cost to the Government could be about $300 million if successful.

Last September, the Government provided Southern Response with an indemnity 'in relation to certain litigation'.

Southern Response was set up by the Government when insurer AMI failed in 2012 because it was unable to meet its Christchurch earthquake obligations.