EQC welcomes Declaratory Judgment ruling
EQC Chief Executive Ian Simpson says the High Court Declaratory Judgment decision is a good result for many EQC customers.
The High Court decision on settlement of Increased Flooding Vulnerability (IFV) damage as a result of the Canterbury Earthquake sequence was released today.
EQC received confirmation on most of the matters it put before the Court. In particular, the Court endorsed settlement based on Diminution of Value (DOV). The Court also ruled that IFV is not a form of building damage.
“The judgment is a positive outcome for many EQC customers because it supports EQC’s approach to settling complex land claims,” Mr Simpson says.
“This decision clears the way for EQC to assess and make payments based on our IFV policy, including DOV where land repair is not feasible or consentable,” Mr Simpson says.
“It means we now have answers to some of the more challenging questions for our customers in Christchurch,” Mr Simpson says.
EQC plans to begin settlements as soon as possible in 2015. There are around 9000 potential IFV customers in Christchurch with another 4500 potential IFV properties in the red zone.
“We appreciate the speed with which the Courts enabled the Declaratory Judgment proceeding to be heard and determined to provide certainty to our customers,” Mr Simpson says.
EQC sought the Declaratory Judgment to confirm its IFV settlement approach so customers can be confident their settlements are soundly based. The Court heard a range of differing views from EQC, the Insurance Council, Southern Response, two Amici Curiae (representing the residents of Christchurch and others), and the Flockton Cluster.
Available here: The declaratory judgement on land