Call to fix ‘failed’ quake court
A community group is calling for changes to the court system that manages earthquake insurance cases, claiming it is overburdened, under-resourced and prohibitively expensive.
Empowered Christchurch this month wrote to Justice Minister Andrew Little listing seven steps it felt would improve the efficiency and equity of the High Court Earthquake List.
The list was established in 2012 to handle earthquake-related litigation. Its most recent figures list 508 open cases on the books.
In an accompanying statement to the letter, the group said only 42 cases had reached the court hearing and judgment stage. In the year to September, just six were disposed by judgment. The system had ‘‘clearly failed’’, Empowered Christchurch said.
‘‘Up until now, the process of suing the Crown entity [the Earthquake Commission], the government-owned insurer, Southern Response, or a private insurer for an earthquake claim has been a long and protracted one,’’ the letter said.
‘‘After waiting for periods of up to two years and more for a date in court, a number of earthquake cases have been adjourned because insufficient time was allocated to hear the evidence.
‘‘Claims are kept out of the courts through generous funding and the promotion of ‘advisory services’. With just a small number of court decisions, no precedents are set.’’
Other problems included the need to engage experts from a limited pool of surveyors, structural and geotechnical engineers and quantity surveyors and the cost of High Court litigation, it said.
Its seven recommendations included assigning more judges to work on earthquake list cases (two judges currently handle the bulk of the work), allowing a minimum time period for each case to be heard, reducing court fees and extending the limitation period in which claimants could take legal action against insurers.
The Labour party’s election promises included extra funding for the Residential Advisory Service and Community Law to work on earthquake issues and $1 million to pursue test cases that would offer clarity on matters like the Limitation Act. It also pledged to set up a tribunal to resolve insurance disputes that would work quickly and provide compensation for distress over ‘‘undue delay by insurance companies’’.
‘‘No information has yet been released about what format this [tribunal] might take or what legislative changes would be required,’’ Empowered Christchurch wrote to Little.
Labour is now in government and has said the tribunal would be up and running ‘‘as soon as possible in 2018’’.
Greater Christchurch Regeneration Minister Megan Woods said she was ‘‘happy to meet’’ Empowered Christchurch to discuss its ideas.
‘‘We have real concerns about people not being able to afford access to justice and we want to address that.’’
In a progress report on the earthquake list from September last year, Chief High Court Judge Justice Geoffrey Venning said 472 cases had been resolved before reaching trial stage. Forty-two were disposed by judgement.
‘‘The most common and cost effective resolution for the parties is settlement,’’ Justice Venning said.
‘‘A number of settlements have been achieved through the use of judicial settlement conferences and privately arranged mediations. The settlements are a positive indicator that the Earthquake List process provides parties with a process to reach a determination of matters in dispute.’’