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Class Actions and Litigation Funding?
Kalev Crossland Partner
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2High Court Litigation
$300 - $500K for 2 or 3 week trials
Insurer - effectively limitless war chest
2 years wait
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3High Court litigation
1/3 – 2/3 costs back $150k – $250k dead money
even if win Life frozen
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4High Court litigation
Inequality: pre-trial; power lawyeringmediation
Insurers repeat and well-versed in court cases
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5Group Actions
Group Actions – 2 types Class Actions vs Representative Actions
Class action commonality derived from nature of the parties Representative actions commonality derived from nature of the issues NZ – only representative actions but courts flexible
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6Representative Actions: requirements
Group capable of clear definition : e.g people insured with IAG for home and contents
Common issue: eg underscoped repairs with insurer using MBIE guidelines instead of policy standard – LMG + resin instead of new foundation
Chosen representative must adequately embody the group (eg Cam Preston in SR action)
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7Group Actions: further considerations
Doesn’t matter that individuals may need separate assessment after common issue ruled on by Court
Doesn’t matter relief relates to separate contracts: eg different variants of same policy but same issues still arise (eg as when new)
Identity of some members unknown (can join action after case filed; eg EQC and SR actions) – limitation
Can have subgroups
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8Group Actions: Why?
Aggregating lots of smallish claims into one big one together makes litigation costs relatively small and thus more economic
Also levels playing field – prevents insureds being picked off
Destresses – support aspect via a group
Group committee
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9What is litigation funding?
Enables a plaintiff to sue without having to pay
No win, no fee from many fundersPlaintiff protected from costs award if
case lostFunder posts security
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10Litigation Funding: Why?
Access to justice Allows claims that would not be brought to occur
Enables claimants to transfer risk and cost of litigation while still benefiting from proceeds of a win
Access to experienced lawyers and experts
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11Team
Sarah Miles Kalev Crossland and Shieff Angland Neil Campbell QC University of Canterbury Law Students Various engineers, QS, surveyors Collaborate with legal academics
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12Where to from here?
LPFNZ based litigation funder In serious talks LPF – doing PSA kiwifruit claim, highly
credentialed directors Gather claimants Identify common claims
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13What does litigation funder need?
Identified claims Legal opinions on claims Expert opinions on claims Claimants? Online survey Details on Sarah’s blog
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14What classes of claims and a new remedy?
Building settlement: floodplain datum MBIE guidelines versus policy standard Failed repairs Unjust cash settlements
Remedy: Stripping insurers of profits generatedfrom delayed payment and lowball settlementsCf Judicature Act
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15How it would work
Members sign up online 1 page document
Interviewed, documents collected and collated Submit application to LPF File claim and permission as representative action Dedicated website/app Info and updates Litigation committee
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16
Kalev Crossland Partner