Supreme Court confirms opt-out representative class actions are available with Southern Response decision
On 17 November 2020, the Supreme Court handed down its decision in Southern Response Earthquake Services Limited v Ross  NZSC 126. The decision confirms opt-out orders should be made available in representative actions where appropriate.
Southern Response highlights that a plaintiff’s proposal should be adopted, including whether to make it opt-out or opt-in, unless there are good reasons to do otherwise. It also confirms that, in the absence of comprehensive legislation, the courts should both exercise their powers to fill that void and approve representative action settlements.
In this article, Michael Cavanaugh explain the implications of this significant decision for insurers.
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