Tribunal opens for canterbury earthquake claimants By Sam Hider, Miranda Gray, Matthew Prendergast On 10 June 2019, roughly two weeks after the Canterbury Earthquakes Insurance Tribunal Act 2019 received royal assent, Christopher Somerville was sworn in as Chairman of the Canterbury Earthquake Insurance Tribunal.
This marks the opening of the Tribunal and another option for Canterbury Earthquake claimants who want an independent decision maker to resolve their insurance claim(s). How does it differ from the existing options? There are two main existing options for earthquake claimants - the Courts (District Court or High Court depending on the value of the claim) and the Greater Christchurch Claims Resolution Service (GCCRS) determination process. The Courts offer a final and binding decision with precedent value, but there are a number of drawbacks common to all civil disputes such as time, cost and appeal risk. The GCCRS offers a determination service that involves respected decision makers and a quick, inquisitorial and cost effective service. It also has the added risk/benefit of being nearly impossible to appeal. Despite its appeal, some caution should be exercised with the GCCRS as, while its decisions will be based on relevant case law, they are confidential and therefore difficult to evaluate. The Tribunal should be a relatively quick, robust and cheap option that will lead to published decisions. It takes a unique place below the High Court, and almost next to the District Court, except that it has no limit on the financial value of the claim. Like the GCCRS Determination process, the Tribunal takes an inquisitorial approach to claims.1 This means that the Tribunal Members will have the flexibility to seek their own evidence and make inquiries. One significant critique of the Tribunal is that parties can apply to the High Court for leave to appeal on questions of fact and law with further appeals to higher Courts possible on issues of law.2 This could add significant time and cost for homeowners who happen to have a novel or complex case. Which process is best for my claim? We recommend taking legal advice on what process is best for you. However, we anticipate some trends in the type of cases that will go to each dispute resolution forum. If the parties can potentially resolve the issues without involving a third party, or more information is needed to enable discussions to take place, the first step is normally an alternative dispute resolution process. In an earthquake context, this could mean: -Negotiation between the parties -Mediation with a third party mediator -Mediation with a Tribunal-appointed mediator[3] -GCCRS facilitation -GCCRS engineering facilitation with members of the Engineering New Zealand Earthquake Engineers Panel