On-sold Properties
UPDATE 21 December 2020
Homeowners reject Proclaims Management Limited's claim for a "Success Fee" for payments under the Government's On-Sold Programme
Anthony Harper has provided the following important advice concerning Proclaims Management Ltd and the Government On-sold Over-cap Programme.
We have become aware that Proclaims Management Ltd is claiming a "Success Fee" for the repair costs that are to be paid by the Government to homeowners under the Government's Ex Gratia On-sold Over-cap Programme ("the On-sold Programme").
The Proclaims' contract includes:
Proclaims is engaged to ensure that EQC and the clients' insurer (if applicable) pay the correct amount to reinstate the already repaired foundations to the required standard;
Proclaims' services include liaison, negotiation and settlement of the claim with EQC and the insurer;
Proclaims' Success Fee is to be paid within seven days of receiving payments from EQC and the insurer.
We are aware of several homeowners who have received demands for payment from Proclaims, even though they have terminated their contracts with Proclaims. Further, they have felt very intimidated by the demands.
Ex gratia payments made by the Government under the On-sold Programme are payments by the Crown and they are not subject to the terms of any contract between EQC and/or the insurer and the homeowner. Additionally, we understand that recipients of the ex gratia payments are required to sign a statutory declaration confirming that they will spend the payment on the reinstatement or replacement of the residential building on the property. Proclaims "Success Fee" is not included within the amount paid by the Crown.
In our view, Proclaims is not entitled to any part of the ex-gratia payment under the On-sold Programme (the validity of Proclaims contract and whether Proclaims has performed its obligations under the contract, generally, are separate matters).
We have proposed to Proclaims that it should apply to the Court for a declaration as to whether the terms of Proclaims' contract extends to Proclaims being entitled to charge a "success fee" in respect of any payments made to homeowners under the Government's On-sold Programme. Our clients intend to oppose that application.
It appears that many homeowners may have received similar demands from Proclaims. We urge any homeowner that has received a demand from Proclaims for a "Success Fee" in respect of the On-sold Programme (whether they have paid it already, or not) to contact us, to become part of the group which is rejecting Proclaims' demands.
EQCfix Public Meeting
Video presentations of the EQCfix Meeting held at the Transitional Cathedral in Christchurch on 02 March 2020.
Grant Cameron of GCA talks about class actions
PeterWoods of Anthony Harper talks about the Ex Gratia package administered by EQC
Questions for the speakers from the EQC Fix Meeting
Stewart Harrison of Harrison's Quantity Surveyors
Dean Lester talking about the CRG and the Insurance Reinstatement Process
Renee Walker, EQC, presentation at the EQCfix Meeting
THE CROWN OFFER ELIGIBILITY DOCUMENT
Republished from a EQC Fix Facebook post 16 December 2019
https://www.facebook.com/eqcfixnz/posts/1395053350663022
Extreme care advised
We recommend you take extreme care with the Crown's offer when dealing with EQC. You may need to spend a little and get some legal advice before you opt in. Next, make sure you get paid for EVERY legitimate cost you incur as part of a quality building project (even EQC's cash settlement website page is better than this questionable document). You must seriously consider if you want to take on the burden and risks of management of the repair yourself, or if that is a cost you will pass on to the Crown by way of an independent project management company, or similar.
The following line in this document (below) suggests to us, that little has changed inside EQC and it very concerning how confusing it appears — "If your contractor recommends that you obtain specialist reports, such as structural engineering or drainage reports, you will be responsible for engaging those specialists."
This suggests that EQC propose you pay all the upfront costs to start this process, and that EQC only pay you something once they receive all the documentation. EQC Fix is of the view that after nine years of failures by EQC, this type of ambiguity only compounds the anxiety and confusion in our community.
Get good legal advice first.
