Lawyers involved in legal action against Bay of Plenty Regional Council will be in the Eastern Bay tomorrow to meet with people whose property was affected by the 2017 Edgecumbe flood but did not have insurance.

In February 2023, Shine Lawyers filed High Court proceedings seeking compensation on behalf of all residents of Edgecumbe who suffered loss in the flood caused by failure of a floodwall on the Rangitaiki River.

Shine Lawyers have so far been unsuccessful in progressing this claim to a class action.

On April 2, a High Court judgment

following a two-day hearing in October last year, dismissed the legal firm’s application to bring the claim as a representative (class) action.

Among the reasons was the existence of a parallel proceeding covering the majority of claims.

Insurance company IAG was also suing the council for losses and was joined in this suit by other insurance firms. These parties were also suing Whakatāne District Council.

On May 5, Shine Lawyers filed an appeal to challenge this decision.

“We disagree with the legal standing of the ruling,” said Shine Lawyers senior associate Caro Coates.

However, while the Edgecumbe case continues, it could not be called a class action at this stage.

“Proceedings are currently delayed as there are two competing proceedings, which is of course incredibly frustrating for the property owners affected, and we are therefore here in Edgecumbe to visit our named plaintiffs.”

At the moment, Shine Lawyers’ claim is only able to represent uninsured people, or those not insured by insurance companies that are part of a different proceeding.

Those insurance companies include Vero, Tower, QBE and AA, along with IAG and any of the 13 insurance firms and banks associated with it.

“We are concerned about the precedent that the current ruling sets for not just the people of Edgecumbe, but for the future of litigation in New Zealand with respect to natural weather events like these,” Coates said.

“We are concerned the end result will be that the insured are left with no control over bringing a claim for their uninsured losses and in circumstances where they may not have signed away their rights to these, and that uninsured parties are left totally unrepresented without viable means to recover their losses.”

“Ultimately, insurers have a commercial incentive to recover what indemnity payouts they have already made to their insureds and nothing more.”