New Zealand government insurer Southern Response wants to eschew a Court of Appeals order that a portion of its settlement go to litigation funder Claims Funding Australia. Maurice Blackburn and Claims Funding took over representation for 3,000 claimants after a New Zealand court allowed an opt-out class action for only the second time in history. Southern Response is weighing an appeal to the decision, preferring to deal with the claimant pool directly.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
New Zealand government insurer Southern Response wants to eschew a Court of Appeals order that a portion of its settlement go to litigation funder Claims Funding Australia. Maurice Blackburn and Claims Funding took over representation for 3,000 claimants after a New Zealand court allowed an opt-out class action for only the second time in history. Southern Response is weighing an appeal to the decision, preferring to deal with the claimant pool directly.
As reported in Share Chat, in 2012, Southern Response took over claims on policies written by failed insurance company AMI. The court allowed some 3,000 claimants to engage in an opt-out action, thereby including all potential claimants in the action unless they specifically opt out.
The claim is being funded by Claims Funding Australia, and Southern Response is challenging the funder’s ability to collect on its portion of any settlement in the case. Currently, the government insurer is dealing with a separate action – also in the Court of Appeal – and wants to address this action once the other has concluded.
Maurice Blackburn and GCA lawyers – both representing the claimant pool – have said they plan to negotiate with Southern Response, but are taking the position that the insurer has no business eschewing the opt-out order from the court.
