Kalev Crossland of Shieff Angland and Sarah Miles, Christchurch Insurance Fiasco have provided some information for homeowners on group legal action....

1. Class Actions and Litigation
Funding?
Kalev Crossland
Partner

2. High Court Litigation
 $300 - $500K for 2 or 3 week trials
 Insurer - effectively limitless war
chest
 2 years wait
2

3. High Court litigation
 1/3 – 2/3 costs back
 $150k – $250k dead money
even if win
 Life frozen
3

4. High Court litigation
 Inequality:
 pre-trial; power
lawyering
mediation
 Insurers repeat and well-versed
in court cases
4

5. Group Actions
 Group Actions – 2 types
 Class Actions vs Representative Actions
 Class action commonality derived from nature of the parties
 Representative actions commonality derived from nature of the issues
 NZ – only representative actions but courts flexible
5

6. Representative Actions: requirements
 Group capable of clear definition : e.g people insured with IAG for home
and contents
 Common issue: eg underscoped repairs with insurer using MBIE guidelines
instead of policy standard – LMG + resin instead of new foundation
 Chosen representative must adequately embody the group (eg Cam
Preston in SR action)
6

7. Group Actions: further considerations
 Doesn’t matter that individuals may need separate assessment after
common issue ruled on by Court
 Doesn’t matter relief relates to separate contracts: eg different variants of
same policy but same issues still arise (eg as when new)
 Identity of some members unknown (can join action after case filed; eg
EQC and SR actions) – limitation
 Can have subgroups
7

8. Group Actions: Why?
 Aggregating lots of smallish claims into one big one together makes
litigation costs relatively small and thus more economic
 Also levels playing field – prevents insureds being picked off
 Destresses – support aspect via a group
 Group committee
8

9. What is litigation funding?
 Enables a plaintiff to sue without having
to pay
 No win, no fee from many funders
 Plaintiff protected from costs award if
case lost
 Funder posts security
9

10. Litigation Funding: Why?
 Access to justice
 Allows claims that would not be brought to occur
 Enables claimants to transfer risk and cost of litigation
while still benefiting from proceeds of a win
 Access to experienced lawyers and experts
10

11. Team
 Sarah Miles
 Kalev Crossland and Shieff Angland
 Neil Campbell QC
 University of Canterbury Law Students
 Various engineers, QS, surveyors
 Collaborate with legal academics
11

12. Where to from here?
 LPF
 NZ based litigation funder
 In serious talks
 LPF – doing PSA kiwifruit claim, highly
credentialed directors
 Gather claimants
 Identify common claims
12

13. What does litigation funder need?
 Identified claims
 Legal opinions on claims
 Expert opinions on claims
 Claimants? Online survey
 Details on Sarah’s blog
13

14. What classes of claims and a new
remedy?
 Building settlement: floodplain datum
 MBIE guidelines versus policy standard
 Failed repairs
 Unjust cash settlements
 Remedy: Stripping insurers of profits generated
from delayed payment and lowball settlements
Cf Judicature Act
14

15. How it would work
 Members sign up online
 1 page document
 Interviewed, documents collected and collated
 Submit application to LPF
 File claim and permission as representative action
 Dedicated website/app
 Info and updates
 Litigation committee
15

16. Kalev Crossland
Partner
16