Class action comment

A local lawyer has been promoting a potential class action against Southern Response.  The promoters of the class action idea say their complaint is about the time it has taken to resolve claims. 

We believe the class action concept is flawed and won't serve the best interests of our customers. 

A class action needs to be based on a common legal question that applies to all the participants in the claim.  There is no legal issue of that nature in the post earthquake recovery environment we are working through.

For Southern Response's customers, each situation is different.  Southern Response is working though those situations on a case-by-case basis as quickly as the circumstances allow. 

A class action will not assist customers to resolve their individual claims.

Instead, a class action will distract both Southern Response and our customers from resolving claims and will force everyone involved to spend resources and time on unhelpful litigation. A class action will not increase speed; it will slow things down, as crucial people in the residential recovery are diverted to respond to the class action.  It will also be costly to prosecute and defend.

We would encourage our customers who are thinking of getting involved in a class action to get a second opinion, or talk to the Residential Advisory Service or the Insurance & Savings Ombudsman scheme, both of which are free of charge.

Southern Response is committed to the residential recovery in Christchurch and will continue to devote its time and attention to resolving claims.