Southern Response Class Action

15 December 2015

Grant Cameron, the lawyer acting for the Southern Response policyholders bringing a class action, confirmed this afternoon that the group will be appearing before the High Court in Christchurch at 9am on Wednesday 16 December. “Our group of policyholders are seeking redress from the court for alleged breaches of contract by the insurer” he said. “The hearing tomorrow is a preliminary one designed to settle the question of whether the case can proceed through the courts as a representative action. Southern Response has maintained that the policyholders cannot bring this sort of proceeding because the damage in each case is different, as is the repair strategy. However, we believe that is to miss the point,” said Mr Cameron.

“There is no difficulty in the parties agreeing what the damage is and how it might be fixed in particular cases, but had this been properly progressed by the insurer to date, most policyholders would have had their claims settled a long time ago. The issue is not about ‘different damage’ but instead, is all about how the insurer chooses to interpret the policy or discharge its obligations” said Mr Cameron.

“Like the 46 policyholders presently in the action and nearly 3000 other unsettled claimants, effective progress will require the court to decide how the policy is to be interpreted in important respects. Therefore, although the case is a little different to other class actions, the group is very optimistic that the court will agreed that the case should proceed as a representative action”

“Class action members believe the insurer is happy to take such technical points in the hope that a court decision that the case not proceed as a representative action would mean policyholders could not bring any form of litigation before the courts. Put simply, this issue is all about access to the courts and the ability of the man in the street to obtain remedies from the court. In the present circumstances, virtually no policyholders can afford to ‘go it alone’ and so the only way forward is for policyholders to join together and proceed with the support of a litigation funder”, he said.

Francis Cooke QC will advance the policyholder’s case before Justice Mander, with Mike O’Brien QC appearing for the insurer.

ENDS

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