An insurance expert says a Supreme Court decision yesterday could open lawyers up to legal action from anybody who has bought a home in Christchurch since the 2010 and 2011 earthquakes. The court's decision makes it clear that insurers cannot be held liable for meeting the full replacement cost of a quake damaged home by the subsequent purchaser of that house.
The Earthquake Commission has settled with a Christchurch homeowner, just days before their test case was due to be heard at the High Court. Jamie Gibling used his KiwiSaver to buy his first family home in New Brighton after the quakes, believing it had been properly repaired. He later learned the repairs were botched and would cost $300,000 to fix. His "onsold" test case was supposed to be heard on Monday to clarify who was liable. But today EQC announced it had reached a settlement with the family and that agreement would provide a framework for the 54 other claimants also with Shine Lawyers. Finance and EQC Minister Grant Robertson last week announced an "onsold" settlement kitty of $300 million for the next 12 months but legal experts working with claimants have told Checkpoint it could cost taxpayers much much more. EQC's Deputy Chief Executive is Renee Walker. On Thursday she came into the studio and Lisa Owen asked her if the Giblings got what they asked for and if the 54 others who signed up to the class action would get the same.