Whiting v Earthquake Commission

Whiting v Earthquake Commission [2014] NZHC 1736 was a case brought by the plaintiffs, Jacqueline Ellen Whiting and Kenneth James Jones and Richard Scott Peebles, against the Earthquake Commission (EQC) and IAG New Zealand Limited. The plaintiffs sought an award of costs against EQC after they alleged that EQC failed to settle claims in relation to earthquake damage caused to a house they purchased in May 2012. The plaintiffs argued that the conduct of EQC in not promptly meeting its statutory obligations necessitated the filing of proceedings. EQC resisted any award of costs arguing that it had not admitted the claim and denied that it had breached any legal obligations owed to the plaintiffs. The court had to decide whether the plaintiffs' litigation against EQC was reasonable and whether EQC's settlement of the claim represented vindication of the plaintiff’s decision to issue proceedings. The court found that the plaintiffs' litigation against EQC was reasonable and that EQC's settlement of the claim represented vindication of the plaintiff’s decision to issue proceedings. The court ordered that EQC pay to the plaintiffs 50% of the costs and disbursements set out in the schedule to the plaintiffs’ memorandum of 4 June 2014, with some adjustments made for the number of appearances at case management conferences.