Why is Southern Response liable?

Southern Response was set up by the Government when insurer AMI failed in 2012, to settle outstanding claims from policy holders.

In August 2019, the High Court found Southern Response had engaged in misleading and deceptive conduct. Peter Woods of Anthony Harper, acting for Karl and Alison Dodds, established that Southern Response had misrepresented their insurance entitlements (Dodds v Southern Response Earthquake Services Limited [2019] NZHC 2016).

The insurer had produced two differing detailed repair/rebuild assessments, or DRAs, which scoped the costs of rebuilding or repairing their home. However, Southern Response only showed the Dodds one DRA which did not include some costs they were entitled to under their insurance policy.

The Government appealed to the Court of Appeal, saying it needed legal clarity because of the thousands of other Southern Response claimants in a similar position. The Court of Appeal dismissed the appeal in September 2020 (Southern Response Earthquake Services Limited v Dodds [2020] NZCA 395).

Southern Response has accepted the findings of the Court of Appeal and the Government’s decision not to appeal that judgment.

The Dodds’ case has opened the way to rectify thousands of similar Southern Response claims.

Southern Response wished to contact directly claimants it considers eligible for a further payment, estimated to average around $120,000 per claim. The Ross Class Action has stopped Southern Response from going direct to homeowners, but Southern Response is entitled to deal with homeowners’ lawyers. Anthony Harper can deal with Southern Response on your claim for the balance due.

Find out how you can claim your Southern Response payment here.