The way may soon be clear for “On-Sold” homeowners to access a cash payment from EQC without the stringent conditions previously in place.
More than 50,000 homeowners bought earthquake damaged homes they believed were properly repaired by EQC following the Canterbury earthquakes. Many of these homeowners subsequently found they were not properly repaired and applied for the Government On-Sold programme which has stringent conditions for the homeowner, including tranche payments and a covenant on the land title until works are completed.
The High Court has ruled that a class action can be taken against EQC to receive a cash payment rather than being forced to repair or rebuild the home as required by the Government On-Sold programme which is administered by EQC.
Leading insurance lawyer, Grant Shand, who took the case that has resulted in the courts opening this pathway for a class action, says a significant number of homeowners will be pleased by this decision.
“Many homeowners do not want to go through the stress and extended time it will take to complete repairs, and these will be extensive repairs given they are over the EQC cap,” he says. “Some may be looking to move to a retirement home, some to relocate to be with family elsewhere; there are many reasons the Government On-sold programme is not appropriate for affected homeowners.”
Mr Shand says he is aware of several cases where people have gone to sell their home that was repaired by EQC, only to find there are serious issues with that repair and the house can’t be sold.
“One of these involved a couple in their late 80’s. No-one but especially older people ready to move to the next stage of their lives, should have to spend their precious time fixing an issue that was created by EQC,” he says.
The class action requires claimants to “opt in” and people can do that in the next couple of months when a judge decides how that process will work. In the meantime Mr Shand is encouraging people to register their interest in the class action, which is being supported by litigation funder, Canterbury Litigation Funding Ltd.
If claimants are due any amount from EQC as a result of this class action, the litigation funder will deduct a fee of up to 15% (including GST) of any settlement monies received or judgment sum awarded. Claimants will not be asked to pay any money up front or pay for a share of any costs – it’s simply a deduction of up to 15% (including GST) from any amount you are entitled to receive once the class action is resolved.
Members of the class action will have no liability for legal or court costs if the class action is unsuccessful.
“With the delays currently being experienced as a result of the building material shortages and other pressures on key people such as engineers and builders, being able to receive a cash payment and move on, I believe is going to be a very attractive option to many,” says Mr Shand.
Interested claimants can go here or paste this in their browser www.eqconsold.co.nz
