Policyholders with Southern Response got a rare bit of good news as their class action against the insurer was launched. New Zealand’s top litigation funder, LPF, will provide financial support for the action. Those homeowners who were insured by Southern Response and made a claim after their home was damaged in the earthquake are eligible for inclusion—if their settlement was lower than it should have been.
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Southern Response
Southern Response’s Desperate Attempt to Avoid Opt-Out Class Action
by John Freund
written by John Freund
Government-owned entity Southern Response is engaged in a last-ditch effort to avoid an opt-out class action over allegations regarding earthquake insurance settlement claims. Policyholders have asserted that Southern Response withheld information allowing them to underpay when settling claims related to the Canterbury earthquake.
Staggering data has emerged in the class action suit against Southern Response, showing that the liability of the New Zealand federal government could surpass $400MM. This estimate is based on the nearly 3,000 plaintiffs subjected to unlawful behavior by Southern Response—who had assumed responsibility for claims sold by private insurer AMI, which was liquidated in 2012.
Southern Response Wants to Avoid Paying Claims Funding Australia in Settlement
by John Freund
written by John Freund
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.