People that settled with Southern Response based on an Arrow Detailed Repair/Rebuild Analysis (“DRA”) may have claims against Southern Response under the Fair Trading Act where the settlement sum was based on a DRA, but Southern Response did not disclose that it had other DRA’s with a greater sum that included extra components/allowances that were part of a rebuild cost.  Concerned insureds need to act quickly by reason of limitation issues.  Check whether the DRA settled on had allowances for fees and contingency etc.

In Driessen v EQC & Southern Response [2016] NZHC 1048 the High Court (Davidson J) on 19 May 2016 has ordered EQC and Southern Response to pay costs and disbursements to a homeowner where EQC and Southern Response settled the claims after being sued for amounts greater than they had offered to pay prior to being sued.  Prior to being sued in November 2013 EQC assessed the damage at $58,504.  Southern Response assessed its liability at $20,000 for DFPP.  Ultimately EQC paid $153,422 in November 2015 and Southern Response paid $358,232 in March 2016 (weekend before trial).  The Court ordered EQC to pay $20,120.08 and Southern Response $50,030.30.  The judgment shows the benefit in suing EQC and insurers.