Southern Response
At least 3000 Canterbury homeowners entitled to part of $300 million Southern Response payout
At least 3,000 Christchurch Southern Response policyholders are to receive compensation totalling approximately $300 million, after a High Court direction clears the way.
Southern Response’s decision to accept the Court of Appeal's findings in the Dodds’ case allows at least 3,000 Christchurch policyholders who settled their claims before 1 October 2014 to receive compensation of $100,000 each, on average, amounting to over $300 million.
Anthony Harper Lawyers have set up a website to help Southern Response policy holders understand their options and how to make a claim.
Media coverage
New Zealand Herald: https://www.nzherald.co.nz/nz/at-least-3000-canterbury-homeowners-entitled-to-part-of-300-million-southern-response-payout/4OMJ7QJBI6KAJKWZRVQEVRIL3I/
Otago Daily Times: https://www.odt.co.nz/star-news/star-christchurch/southern-response-policyholders-entitled-part-300m-payout
Crown insurer Southern Response won't appeal Dodds earthquake insurance decision
The Government will not appeal an earthquake insurance court decision that set a “powerful precedent” for a class action that may involve thousands of other Christchurch homeowners and cost taxpayers more than $400 million.
Southern Response appeal on Dodds decision largely dismissed
A Christchurch couple locked in an ongoing legal battle with state-owned quake insurer Southern Response says it is sobering for a Court of Appeal decision to go their way, one decade on from the harrowing earthquakes.
On-Solds Important Update
Success Fee not part of Government's On-Sold Programme
Homeowners reject Proclaims Management Limited's claim for a "Success Fee" for payments under the Government's On-Sold Programme.
Important EQC UPDATE
Private insurers take over EQC claims handling
EQC and private insurers have announced a new collaborative partnership to “simplify the insurance process” for home owners from the middle of 2021, following a future natural disaster.
The new natural disaster response model announced builds on the joint approach first used following the Kaikōura earthquake in 2016. Under this approach in Kaikōura, customers had one point of contact. In a statement from EQC CEO, Sid Miller said "EQC drew on collective industry capability to simplify and improve the overall claims experience".
However, Insurance Business Magazine reports homeowners in the Kaikoura area have allegedly been underpaid by insurers for claims stemming from the 2016 earthquake, according to a reconstruction official.
“We are still having a few issues with insurance companies where they have convinced the policyholder of the property to sign paperwork to release funds for repair work to be done on the properties”
Steve Vaughan, Kaikoura District Council’s rebuild navigator, said that his team is seeking legal advice on possible remedies for people who have received inadequate insurance payouts, the Kaikoura Star reported.
“In central Kaikōura in particular, I think insurers felt they could get away with more because it wasn’t as high profile as Christchurch. I don’t think this new model is going to bring about the change that’s required.”
Canterbury Earthquakes Insurance Tribunal – Code compliance matters are back on track
The Canterbury Earthquakes Insurance Tribunal recently reversed its Practice Note direction, which stated that it was not prepared to decide whether particular repairs will comply with the Building Code.
The Tribunal’s Chair, Chris Somerville, has confirmed that the Tribunal will deal with matters of Code compliance on a case by case basis.
EQC privacy breach in error
EQC have advise that on 21 May 2020 a staff member unintentionally sent a spreadsheet to a customer and their lawyer containing information regarding approximately 8000 EQC customers’ claims.
EQC says that the spreadsheet contained the following information fields: claim number, name, address, private insurance company, EQC cap amount, apportionment and amount paid/estimated.
“The customer and lawyer who received the information were contacted immediately”, say EQC. “We are working to ensure that the information is destroyed”.
Released: Report of the Public Inquiry into the Earthquake Commission
The long awaited Report of the Public Inquiry into the Earthquake Commission, with findings and recommendations has been released. The report was released at the same time Christchurch was jolted by a 4.3 earthquake, reminding us that there are still over 1,000 claims outstanding with EQC. The report presented includes a companion document to the Inquiry report that summarises what people told the Inquiry.
Report companion document:
“Almost every single client I had who dealt directly with EQC reported being treated poorly, belittled, and made to feel like they were seeking assistance that they were not entitled to.”
On-Solds
On-solds and EQC Repairs
If you missed the public meeting on 2 March 2020, you can watch each of the presentations from Renee Walker (EQC), Peter Woods, Grant Cameron, Steward Harrison, Dean Lester, along with public questions put to the speakers.
Important overview of rubble foundations
First published 20 July, 2016, this is still highly relevant information for pre-1970’s homes.
Landmark decision in New Zealand law
Court of Appeal moves Class Action against Southern Response forward for concealing costs
Public Inquiry into the Earthquake Commission Submissions Published
Read the EQCFIX.NZ submissions to the Public Inquiry here
EQC Fix is publishing private and community submissions to the Public Inquiry into the Earthquake Commission. You can send your Public Inquiry submission to EQC Fix and request it be published anonymously if you wish.
Submissions will be published here.
Email your Public Inquiry submission in a Word document or text format to: info@eqcfix.nz
EQC could face massive bill for missed earthquake damage to concrete slabs
29 August, 2019
Some Canterbury homeowners are worried that missed earthquake damage to concrete slabs could result in another big bill for the taxpayer.
It comes only weeks after EQC told Checkpoint the cost of mis-scoped damage or defective repairs following the Canterbury earthquakes could cost up to $1 billion.
The missed damage is showing up in unreinforced concrete slabs that were built before changes to the building code in 2011 which prevented use of unreinforced concrete floor slabs.
Questions are now being raised as to whether EQC overlooked or ignored this damage in thousands of homes throughout Christchurch.
Southern Response engaged in misleading and deceptive conduct, High Court finds
16 August, 2019
Media reports: Southern Response has been found to have behaved deceptively in a potentially precedent-setting High Court case that could cost taxpayers hundreds of millions of dollars.
The claimant was represented by Peter Woods and Tim Grimwood, of law firm Anthony Harper.
Radio New Zealand Checkpoint reports: "Misleading & deceptive" - that's how the High Court has described the behaviour of Southern Response - the state owned quake insurer.
In a ruling released today the court found Southern Response failed to act in a fair and transparent way and breached its duty of good faith in dealing with Christchurch couple Karl and Alison Dodds, whose quake damaged house was written off.
Lisa Owen asks their lawyer, Peter Woods about his reaction to the court's finding.
Read full court judgement here: https://www.courtsofnz.govt.nz/cases/dodds-v-southern-response-earthquake-services-limited/@@images/fileDecision?r=544.718712239
Government to pay for failed repairs to earthquake-hit Canterbury homes
15 August, 2019
The new package will enable homeowners of over-cap on-sold properties* in Canterbury to apply for an ex gratia Government payment to have their homes repaired.
Ruiren Xu And Diamantina Trust vs. IAG New Zealand
Statement from Lawyer, Peter Woods (Partner – Anthony Harper, ChCh)
Xu deals with a case where the house was sold on an "as is" basis, with an assignment of the original owner's rights under their insurance policy to the purchaser. In the majority of "as is" sales, the rights are not assigned, as the original owner will have settled their insurance claim for the EQ damage to the house. They keep the cash settlement and the sale price is reduced.
EQC reopen over 600 claims for defective foundation repairs
A Christchurch couple has uncovered a fault in their houses earthquake repairs that could affect hundreds of other homeowners and cost millions to repair. — Read more
Southern Response Class Action moves ahead
Southern Response had a practice of maintaining two (2) versions of each DRA. One version did not include all costs that are part of a repair/rebuild cost such as demolition, professional fees and contingency.
More about Southern Response DRA’s
For further information visit the Grant Shand website
IT’s Not Too Late Lodge your 2018 claims with EQC
“The Earthquake Commission is reminding customers whose homes and property suffered damage in the earthquake that struck the North Island near Taumarunui on 30 October last year that they still have time to lodge a claim.” Find out more here
Southern Response spied on earthquake victims
“The inference that otherwise apolitical earthquake victims could be put in this category and seen as a security concern has shocked many observers, and not just in Christchurch”. – Editorial, The Press, Dec 19 2018
High Court Cases
Canterbury High Court quake insurance cases filed/disposed
Lessons learned FROM Greater Cristchurch
EQCfix.NZ has been working on a series of lessons learned…
Congratulations to Mel Bourke on being awarded the Kiwibank Local Hero medal.
The regional judging is complete and we can now name this years Kiwibank Local Hero medal recipients includes Mel Bourke, a driving force behind EQC Fix and championing the rights of earthquake insurance claimants.
The Kiwibank Local Hero award recognises those whose selflessness and determination has made a difference in the community. It provides a special opportunity to all New Zealanders, who have witnessed or experienced the contributions made by this years medal recipients, to say thank you, we appreciate what you are doing to make our communities better.
Steel & Tube fined $1.9m for misleading over steel mesh
steel mesh: what does it mean?
The Commerce Commission issued criminal proceedings against four steel manufacturers under the Fair-Trading Act. They did this because they believed the steel mesh being sold to residential property owners did not meet the required Standard
Southern Response Position on Limitation
Some welcome news for the Southern Response 'customer', (who technically aren't customers in the truest sense of the meaning of a customer). Unlike IAG, who is constantly seeking new insurance business and therefore new customers - IAG continues to take a hard line approach with its customers compared to Southern Response and Tower Insurance.
IAG LIMITATIOn Urgent action needed
IAG seem determined to use the 1st July 2018 as its Limitation defence date, when other insurers such as Tower Insurance and Southern Response have a more responsible approach. This is relevant if you are under or over cap. We have information on our site to help you, go via our main menu or click HERE.
"There are about 1,700 claims with EQC for defective assessment/repair. Many of these (and others still to come in) might relate to rubble foundations. It is possible may will go ‘over-cap’ and be transferred to the insurer. IAG could get up to 50% of these claims. Most will not even get to IAG before 30 June." Please note, the text in italics was provided to EQCfix, it has not been validated, is not our opinion, so any factual errors are therefore not our responsibility.
Ministerial Advisor Report
At 1:00pm 6th June 2016 the Report of the Independent Ministerial Advisor to the Minister Responsible for the Earthquake Commission was released
Earthquake Commission Amendment Bill
This bill amends the Earthquake Commission Act 1993. Submissions are now being accepted.
Submission deadline: 31 May 2018
EQC Minister: Houses not properly assessed could cost millions
EQC 'on-sold' liability could cost as much as $1 billion. EQC boss knew of repair problems for a year. According to RNZ Morning Report, the Former Christchurch earthquake recovery minister Gerry Brownlee said this is a crisis being manufactured.
Homeowners are left with no option - sue IAG before 30 June
our last meeting for 2017. EQCfix covered three critical topics.
demystify land claims
Buying or selling? Understand assignment of claims.
Worried you’ve been underscoped / under assessed by EQC?
Was your claim discharged by Southern Response?
Thank you to all those who attended our last public meeting for 2017.
See presentation from Grant Shand on Southern Response and the Concealed DRA’s
Event speaker list and details here
EQC obligations under the EQC Act
A timely reminder for Kaikoura claimants to read the Joint Statement agreed to by EQC 28 April 2016. Know your rights. Also check out this guide to the Claims Process.
Urgent Attention: Limitation Act
urgent action required by IAG customers
In respect of "on-sold" properties IAG will not confirm that it has agreed to defer the LP defence to 30 June 2018. It appears that IAG is going to claim that re. "on-sold" properties it can rely on the LP defence from 4/9/17.
November 2016 Earthquake
Serious questions for EQC and your insurer
Many questions from claimants and experts have been raised about how EQC and insurers are dealing with assessments and the claims process following the November 2016 earthquake. Consider if these questions are important to your claim.
LIMITATION EXTENSION REQUEST TEMPLATES
While we do not necessarily accept that the limitation period for Canterbury claims will expire on 4 September 2017, we are concerned that some insurers may consider that it does expire then, and that they may rely on it as a defence to any claim you may be required to bring.
We have just added several templates for claimants to request an extension from their insurer to the limitation period imposed under the Limitation Act 1950 and/or Limitation Act 2010. This is very important for any homeowner with a claim. You should take action now.
Other template available include:
Expert legal opinions
Q&A from legal experts
EQC Fix has just added expert legal opinions on the burning questions many of you will have around your insurance claims.
Joint declaratory statement with EQC
EQC Group Action Settlement
A group of 98 Canterbury homeowners has won a landmark settlement with the Earthquake Commission (EQC) following a bid for a joint declaratory statement. The joint statement is relevant to anyone with settled or unsettled properties with EQC dwelling claims. But what does it all really mean for you?
A packed public meeting was held at the Transitional Cathedral, 12 May 2016, with the aim to inform home owners of the joint statement/agreement reached and its implications for them and their property. Radio New Zealand Checkpoint - John Campbell previews the public meeting - Listen to the interview
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QUOTES
“How will they (EQC) ever cope with an event in Auckland or Wellington, if they can’t sort out Christchurch?”
“I think the Government needs to learn from the $1.5b of taxpayers’ money that it has had to pay to bailout that last board of directors of AMI Insurance, and it needs to supervise the insurance sector far more carefully and rigorously than it has, otherwise we’re doomed to repeat the same thing again.”
“Everyone else will be able to point to it and say ‘well EQC, you’ve now agreed to the group that this is the standard you’ve got to meet and you haven’t done that at my place. Please explain, please do it properly or please pay me more’.”
“Given that consideration of repairs to foundations quickly pushes most properties over-cap, insurance companies may find themselves facing a surge of new claims, possibly equal in number to what they have dealt with so far.”
“Astoundingly, EQC is clinging to the position that it has always dealt with home repairs on a ‘when new’ basis, despite its making repeated public statements and telling homeowners that its job was to fix damage to a pre-quake level.”
“Because EQC has chosen to refuse to admit it was wrong, it has decided to phrase the agreement as merely reaffirming what it is already doing.
This means that the concession is unlimited, as all prior claimants can ask for a review. This expands its liability hugely.”
“In our view, the ruling has significance. The EQC’s catalogue of mismanagement, miscommunication and missed opportunities for redemption continues to grow.”