Proposed class action Court of Appeal hearing

Please see below media statement provided today

A spokeswoman for Southern Response said:

“Southern Response is appealing the decision of the High Court because we maintain our serious concerns that the group claim does not meet the requirements for a class action and will not fairly and efficiently resolve each customer’s individual insurance claim.  We are also concerned that a class action will delay the settlement of individual claims, especially given the High Court’s indication that customers’ individual insurance claims will not be considered by the High Court until after the Group’s general claim is dealt with.

“Every customer’s claim is different and Southern Response believes the most fair and effective way to settle each claim is on an individual basis, rather than on a Group basis.

“Southern Response was set up for the sole purpose of settling our Cantabrian customers’ claims. The High Court had allowed a class action to proceed, but only “by a rather fine margin”, and that allegations against Southern Response’s claims management practices are “tenuous”.

“We maintain our serious concerns that a Group action will delay the settlement of individual claims, especially given the High Court’s indication that customers’ individual insurance claims will not be dealt with until after the Group’s general allegations about claims management are addressed.

“Group members were told that they would be “no worse off” by joining. In fact, they could be significantly worse off, and some may have to pay the lawyers and Australian funder up to 20 percent of their entire insurance settlement.

“The original Group consisted of 47 Group members.  A significant number of members have since settled with Southern Response (17) or left the Group and are working towards the settlement of their claim (4). The Group now consists of 26 members.  We will continue to work hard to settle those remaining customers signed up to the proposed action fairly and as quickly as possible, and are still offering customers the opportunity to seek two free hours’ expert, independent legal advice around the conditions of the proposed class action.

“As at the end of June 2017, we have settled 88 percent of our 8,088 over-cap house claims and 99.8 percent of our 21,626 out-of-scope claims.”

-ENDS-