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Canterbury quake court actions start to tail off

The number of earthquake-related cases reaching New Zealand’s High Court has fallen.

In an update on the “earthquake list”, Chief High Court Judge Helen Winkelmann says an average of 11.6 new cases a month have been filed this year, compared with a peak of 16.3 last year.

The court set up the list in May 2012 to fast-track Canterbury quake claims following concerns long-running legal disputes could hamper the region’s rebuild and recovery.

It holds early case conferences that insureds must attend, and parties’ engineering and other experts are expected to confer and collaborate in an attempt to cut case times.

Priority goes to claims involving acute personal hardship or large numbers of people, or that could set a precedent.

359 cases have been filed since the first earthquake in September 2010.

One of the court’s biggest users, insurance lawyer Grant Shand, says it has become “bogged down” and is too insurer-focused.

He blames a shortage of judges and lack of resolution in cases involving the Earthquake Commission, Southern Response and Tower. He says cases increasingly go to the Court of Appeal when insurers do not like the High Court decision.

There is also a shortage of experts such as engineers.

Mr Shand told insuranceNEWS.com.au the earthquake list worked well in the first year but it has become too process and expert-driven “as opposed to being fact and circumstances-driven”.

Insurance Council of New Zealand CEO Tim Grafton says the court has adopted some constructive practices for handling earthquake cases.

Close management in the lead-up to a hearing has helped streamline dispute resolution. “We also support the court’s requirement for homeowners to attend their case management conferences, as it allows homeowners to actively participate in the process,” Mr Grafton told insuranceNEWS.com.au.

Some claims were filed in 2010 and 2011, but Justice Winkelmann says filings “began in earnest in 2012”. Of the 54 cases lodged that year, 46 have been dealt with via a judgement or been discontinued, possibly after the parties negotiated a settlement.

There were 196 new cases filed last year and there have been 104 filings to September 30 this year, down 30% on the corresponding period last year. About 238 cases are active.

Justice Winkelmann says 21 appeals have been filed in the Court of Appeal and most have been granted “entry on the fast track”. Nine judgements have been delivered, determining 14 appeals, with an average of 53 days from hearing to judgement.