Christchurch earthquake: Class action launched claiming Earthquake Commission underpaid victims

A Sumner, Christchurch home damaged in the earthquakes. Photo / RNZ / Diego Opatowski

By RNZ

A class action against the Earthquake Commission (EQC) could be one of the most expensive in New Zealand’s history.

Lawyer Grant Shard said the EQC underpaid his clients after the 2011 Christchurch earthquakes.

Thousands more people will be included in the class action, which was authorised on Friday.

Shard said the commission originally settled claims based on repair costs, but switched to a cheaper alternative after the earthquakes.

“Up until the land claims for the Christchurch earthquakes, it settled land claims based upon what it would cost to repair the damage to the land.

Christchurch’s 185 Empty White Chairs memorial representing the 185 people who died in the Christchurch earthquake on February 2, 2011. Photo / George Heard

“It realised part-way through that was going to cost a lot of money, so it came up with an alternative method that was going to cost a lot less.

Under the old scheme, one of his clients would have been entitled to $200,000. Instead, they received $20,000, he said.

The class action would be on an opt-out basis, so that anyone who fitted the criteria would be included automatically.

“The next step will be to put together a communication that will go to all the members of the class, because this class action is on what’s called an opt-out basis.

“They will have a certain time to opt out if they want to, and then the class will be finalised.”

Shard said the process began in 2017 and could take two or three more years to resolve.

The EQC said it was considering its next steps.

- RNZ