This week, Justice Osborne delivered his final judgment in the landmark class action Ross v Southern Response Earthquake Services Limited. Bankside Barristers Philip Skelton KC, Kelly Quinn KC and Carter Pearce acted for Mr & Mrs Ross on instructions from GCA Lawyers.
Initiated in 2018 by Christchurch residents Brendan and Colleen Ross, the claim asserted that Southern Response Earthquake Services Limited, a Crown-owned insurer, engaged in misleading conduct that resulted in policyholders settling their claims for amounts well below their full contractual entitlements.
Philip Skelton KC, Kelly Quinn KC, and Carter Pearce represented a class of approximately 3,000 homeowners whose properties were destroyed or severely damaged in the Canterbury earthquakes. Claims Funding Australia funded the litigation. Bankside Barrister Tom Weston KC acted for the defendant.
The case was settled following the announcement in December 2021 that the Government had approved a proactive compensation package (the Package) for eligible policyholders who had cash-settled with Southern Response Earthquake Services Limited prior to October 2014. An Independent Oversight Committee (IOC) was established to oversee the implementation of the Package.
Justice Osborne reports in his judgment that, as of 15 June 2025, Southern Response received 2,702 valid registrations for the Package from eligible policyholders who had cash-settled an over-cap claim with the defendant. Approximately 99% of eligible over-cap policyholders either settled with the defendant or received a settlement offer for consideration.
This week’s judgment brings to a close a case that set several important legal precedents for class actions in New Zealand:
- It established that representative claims in New Zealand can be brought on an “opt-out” basis.
- It clarified and significantly expanded the Court’s supervisory powers over representative actions under High Court Rule 4.24.
- It was the first decision to set out the criteria the Court must consider when approving a class action settlement or discontinuance.
- It included the first “opt-out” notification order, along with the first set of guiding principles for class member communication and notification.
Philip Skelton KC said that he is delighted that the litigation has resulted in redress for so many policyholders. This outcome would not have been possible without Mr & Mrs Ross taking the brave decision to pursue this claim and without funding from Claims Funding Australia.
In the media
Stuff, “Southern Response class action deal paves way for payouts” 15 October 2021
RNZ, “Lawyers welcome class action in Southern Response test case”, 16 September 2019
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