Ross v Southern Response Earthquake Services Limited

[2025] NZHC 1778

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTAUTAHI ROHE

CIV-2018-409-361

[2025] NZHC 1778

BETWEEN

BRENDAN MILES ROSS and COLLEEN ANNE ROSS

Plaintiffs

AND

SOUTHERN RESPONSE EARTHQUAKE SERVICES LIMITED

Defendant

Hearing:

On the papers

Appearances:

P G Skelton KC and C B Pearce for Plaintiffs

T C Weston KC and K-M M Paterson for Defendant

Judgment:

1 July 2025

JUDGMENT OF OSBORNE J

[1]        By a judgment issued in December 2021 the plaintiffs were granted leave to discontinue their claim in this representative proceeding (the Judgment).1

[2]        The plaintiffs intended to discontinue their claim because they had reached terms of settlement with the defendant which involved an extra-judicial process by which the claims of class members would be resolved.

[3]        In the Judgment I granted leave to the plaintiffs to discontinue on the terms of the proposed settlement, subject to some additional conditions.2

1      Ross v Southern Response Earthquake Services Ltd [2021] NZHC 3497 [Judgment].

2 At [131].

ROSS v SOUTHERN RESPONSE EARTHQUAKE SERVICES LIMITED [2025] NZHC 1778 [1 July 2025]

[4]        The settlement between the parties, recorded in a Deed of Discontinuance dated 8 October 2021, provided a Settlement Package (Package) that was to remain available to the plaintiffs and all other class members at least until 8 April 2023.3

[5]        Under the Package the defendant established a body called the Independent Oversight Committee (IOC), with terms of reference, to oversee the implementation of the Package. Under the Judgment the defendant was required to ensure the IOC was enabled to perform its role pursuant to its terms of reference, including through reporting to this Court.4

[6]        Under the Package, as approved, the defendant was to file in court for the duration of the defendant’s offering of the Package at three-monthly intervals, a spreadsheet entitled “POPP Registrations Dashboard” (Dashboard). The Dashboard covered details in relation to settlement progress such as registrations, settlements, and active cases.5

[7]        In the Judgment, the Court also ordered, in the event the plaintiff filed its notice of discontinuance, there would be no further order as to the costs and disbursements of the proceeding.

Release of the defendant from its reporting obligations and its obligations relating to the IOC

[8]        The defendant, by memorandum filed by counsel, seeks an order releasing it from its  reporting  obligations  under  the  Judgment  and  its  obligations  (under  the Judgment) relating to the IOC.

[9]        As the Judge who has monitored the defendant’s provision of the Dashboard and the IOC’s reports to the Crown, I am aware that all reporting has been carried out in a timely way and that none of the reports received has given any cause for concern— to the contrary, it has been clear to the Court from the reporting received that

3      Ross v Southern Response Earthquake Services Ltd, above n 1, at [131(b)(i)].

4      At [131(b)(ii)–(iii)].

5      At [131(b)(v)].

the Package has been faithfully and successfully implemented. It has continued to be made available well beyond the initial 8 April 2023 date (above at [4]).

[10]      The defendant’s memorandum is supported by an affidavit of Casey Hurren, the defendant’s Chief Executive who has now sworn a number of affidavits in the proceeding. Mr Hurren exhibits the Dashboard as at 15 June 2025. As Mr Hurren notes, the defendant had received by that time 2,702 valid registrations for the Package from eligible policyholders that had cash-settled an over-cap claim with the defendant. Of those registrations, the defendant had settled 2,628 claims with 19 offers remaining with applicants for consideration. Approximately 99 per cent of the eligible over-cap policyholders as estimated by the defendant have either settled with the defendant or received a settlement offer for consideration.

[11]      Mr Hurren reports the  defendant  is  continuing  to  process  claims  under the Package to policyholders that cash-settled an out of scope only (OOS) claim (being a claim of a different nature). In that regard the defendant had accepted 7,994 registrations for the Package from  eligible  policyholders  that  cash-settled  an  OOS claim with the defendant. Of those registrations the defendant had made 7,589 Package payments to policyholders that originally settled an OOS claim and 303 Package offers were with applicants for consideration. Approximately 87 per cent of the eligible OOS policyholders have either received a Package payment from the defendant or have an offer out for consideration.

[12]      Mr Hurren has also provided information  as  to  the  steps  taken  by Southern Response to locate eligible policyholders. The steps have been extensive, including in relation to the tracking of deceased policyholders and settlement of claims they would have had.

[13]      Mr Hurren deposes the defendant has continued until now to proactively search for and attempt to contact the small number of remaining eligible over-cap policyholders. Mr Hurren undertakes that as new information becomes available the defendant will continue to make further enquiries to deal with policyholders.

[14]      Finally, Mr Hurren refers to the future of the Package. He notes the Unit, within the defendant which is dedicated to the administration of the Package with the extent of settlements to date, has reduced from its peak in early 2023 of 31 staff to having at the end of this month three staff.

Proactive searching to cease

[15]      The defendant intends to discontinue proactive searching from 1 July 2025 at which point the defendant will continue to respond to potential claims as they come to the defendant’s knowledge.

The IOC’s support

[16]      The Chair of the IOC has separately provided a report dated 17 June 2025. The report confirms the IOC is:

(a)satisfied the interests of affected policyholders have been given due consideration;

(b)comfortable Package payments have been calculated and made appropriately, in line with the parameters of the Package; and

(c)satisfied the defendant has made reasonable and extensive efforts to contact the remaining policyholders.

[17]      The IOC supports the defendant’s request to be released from its obligations relating to the IOC.

Discussion

[18]      I am satisfied the Package has been faithfully implemented by the defendant and faithfully overseen by the IOC in terms of both the letter and the intent of the settlement reached by the parties.

[19]      The manner in which the Package has been implemented (and reported  to  the Court), with resolution of applications to the extent achieved, is a vindication of the settlement terms structured and agreed by the parties.

[20]      I am satisfied it would be inappropriate to require a continuation of the obligations of the defendant under the Judgment in relation to reporting to this Court and in relation to the IOC. The burden of those obligations continuing would be disproportionate to the benefits that were intended to be provided under the Package.

Result

[21]I order with immediate effect:

(a)the reporting obligation on the defendant under paragraph [131(b)(v)] of the Judgment is rescinded with effect from 1 July 2025; and

(b)the obligation on the defendant  under  the Judgment  under  paragraph [131(b) (ii)and (iii)] of the Judgment in relation to the IOC are rescinded with effect from 1 July 2025.

Addendum

[22]      The Court congratulates counsel for the parties, and the parties themselves, for settling upon a Package which has so well promoted the interests of policyholders. The Court expresses its appreciation to the defendant’s personnel who have been responsible for maintaining and providing the Dashboard and for the extensive work put in to implementing the Package.

[23]      The Court expresses its gratitude to the independent professionals who constituted the IOC and provided the Court with the assurance of independent oversight of the Package’s implementation.

[24]      Finally, the Court expresses its gratitude to counsel for the parties for their part in ensuring the Judgment has been fully implemented.

Osborne J

Solicitors:

Buddle Findlay, Christchurch G Cameron for Plaintiffs