Southern Response could be on the line for hundreds of millions of dollars after a "significant" Supreme Court ruling will allow thousands of Canterbury home owners to proceed with a class action against the government insurer.
The class action, which consisted of about 3000 home owners and was represented by Christchurch couple Brendan and Colleen Ross, alleged government insurer Southern Response misled them by giving incomplete information about the cost of remedying damage to their homes following the Canterbury earthquakes.
If successful, it was estimated the class action could cost the government hundreds of millions of dollars.
Today's decision in the Supreme Court was the final chapter of a legal battle over whether the class action would proceed on an "opt-in" or "opt-out" basis.