Earthquake advocates sued by former clients
A company that took multiple claims against the Earthquake Commission (EQC) and insurance companies on behalf of earthquake victims is being sued itself.
Claims Resolution Service Ltd (CRS), previously headed by high profile businessman Bryan Staples, is being sued in the High Court in Christchurch by 17 complainants, represented by class action specialist Grant Cameron, of GCA Lawyers.
Staples developed a reputation for taking an aggressive approach on behalf of earthquake claimants and was not shy to file legal action against EQC and insurance companies before settlements were finalised.
This led to insurance companies claiming the court system was being used as a bargaining tool in settlement negotiations and to encourage grossly unrealistic expectations in claimants.
Most of CRS’s legal work was handled by Auckland lawyer Grant Shand of Grant Shand Barristers and Solicitors. The firm has been named as a second defendant.
Papers were lodged on August 30 and allege the defendants misrepresented services, costs and the qualifications and independence of experts used by the companies connected to Staples to further claims.
Shand declined to comment and Staples said he had no knowledge of the court action which is expected to be notified later this week. He accused Cameron of trying to ‘‘drum up’’ business.
Cameron declined to comment. Other court actions involving Staples and Cameron are going on in the background. CRS is suing a client who has refused to pay CRS’s fee or commission after it helped settle her claim and Cameron is acting for the client.
Cameron is also owed legal costs by Waddington home owner Ricky Bligh for whom he acted in a court action against IAG. The claim failed after a trial in the High Court. It was initially handled by CRS which tried to get Bligh to settle. When he would not, CRS withdrew from the case.
Grant Cameron has a mortgage over Bligh’s house but is understood to be not actively seeking to recover legal costs from him. Bligh is seriously ill.
The legal manoeuvres have prompted a number of Facebook posts by Staples, making colourful allegations against Grant Cameron.
A homeowner who spoke to The Press on the condition of anonymity said his experience with Earthquake Services left him disillusioned with the service it provided.
He claimed the company overpromised what could be achieved.
‘‘You need to put a public warning on these people, they need to be shut down. That’s what I feel, because I don’t think other people should go through all this.’’
Claims Resolution Service Ltd has one director, Staples, and all its shares are owned by The Staples Group Ltd, the shares of which are owned by Staples and another company, Dorset Trustees No.2 Ltd.
The directors of Dorset Trustees No.2 Ltd are Christchurch lawyers Clive Cousins and Grant Smith.
The public face of the Staples advocacy business is Earthquake Services Ltd, the sole director of which is Staples. Staples Group Ltd owns all shares in the company.
❚ A previous version of this story incorrectly said Bill Dwyer is chief executive of Earthquake Services. Dwyer was previously general manager at Earthquake Services but has not been involved with the company for some time.