The government could be liable for hundreds of millions of dollars in quake insurance payments following a potentially precedent setting Court of Appeal decision out today.
The court upheld an earlier ruling that found state-owned insurer Southern Response was guilty of misleading and deceptive behaviour when it short-changed Karl and Alison Dodds tens of thousands of dollars after their quake damaged house was written off.
The Dodds say they were tricked into accepting a lower offer from Southern Response only to later discover the insurer had kept secret from them a second higher estimate to rebuild their damaged house.
The High Court ordered Southern Response to pay the Dodds almost $180,000 in damages, plus costs.
But the government supported the appeal saying it needed clarity around similar cases.
Lawyer for the Dodds, Peter Woods, tells Lisa Owen this decision delivers "clarity" in spades.
Southern Response and Minister responsible Grant Robertson declined to comment but issued this statement: "We have received the Court of Appeal's decision for the Karl Dodds v Southern Response case, and we will now be taking some time to assess the Court's findings.
"We will be making no further comment until all parties have had an opportunity to consider the findings and to determine their next steps."
They have not ruled out a further appeal.
