Quake claimants in mediation

Southern Response could be approaching an out-of-court settlement with insurance claimants who have battled for nearly three years for their day in court.

The 27 Canterbury property owners filed a court class action over their earthquake claims in 2015, and received the legal goahead in October.

They say Southern Response, a Government-owned claims management company, committed both a breach of contract and a breach of good faith.

The company is now understood to have been in facilitated mediation with the group.

The move follows Greater Christchurch Regeneration Minister Megan Woods’ urging of both sides to settle the claims.

In a letter to Southern Response chairman Ross Butler obtained by The Press under the Official Information Act, Woods said she was concerned at the time being taken to resolve the matter.

She encouraged the board to seek an agreement with the class action group through a facilitator acceptable to both sides.

‘‘I am concerned that policyholder claims are progressed in a manner that allows all claimants to move on with their lives as soon as reasonably practicable.’’

In a letter to the action group at the same time, Woods asked them to consider ‘‘a facilitated agreement between the parties of the rules that are to govern any settlement process to be undertaken outside the court setting’’.

‘‘I trust that a timely resolution to your claims can be found,’’ the minister’s letter said.

The group’s lawyer, Grant Cameron of GCA Lawyers, said he was unable to say much about the resulting discussions, except to confirm them.

‘‘The facilitations have been helpful,’’ he said.

Southern Response chief executive Anthony Honeybone confirmed the company was ‘‘in discussions and we are entering the last part of that process’’.

The group first lodged court action with 47 members in 2015, but faced opposition from Southern Response.

The Court of Appeal ruled in October that the case could be heard in the High Court.

The claimants are alleging, according to court documents, that Southern Response had a deliberate strategy designed to minimise its financial claims liability, including relying on builders’ quotes in preference to quantity surveyors’ reports.