The Earthquake Minister was required to reconsider and make a fresh offer to uninsured red zone owners. The Quake Outcasts group filed a fresh action to judicially review this second Ministerial decision. The group lost in the High Court but on appeal, the Court of Appeal found* Minister Brownlee’s actions to have been unfair, unreasonable and unlawful. All Crown arguments in support of the Minister’s decision, were rejected. The Crown then settled. Publicly, the National government announced that Quake Outcasts members received ‘only 80%’ of the 2007 value of their improvements, but an interest component saw clients receive about 105% with a substantial costs payment in addition.
As National would only settle the claims of those persons in the action, with a change of government GCA lobbied the new government seeking payment for all uninsured homeowners in red zones to receive their full entitlements. In August 2018 the Labour government confirmed it would pay $12M to over 100 remaining uninsured homeowners in full and final settlement of this affair.
*Quake Outcasts v The Minister for Canterbury Earthquake Recovery and Chief Executive of the Canterbury Earthquake Recovery Authority [2017] NZCA 332
