COMMENT

This week's landmark Court of Appeal ruling, which will allow a class action against
Southern Response to proceed, has significant cost implications for the government-owned settlement agency.

Importantly, the ruling includes all claimants, not just those already in the class action, on an opt-out basis. This means the government will be liable for re-repairs for all Southern
Response claimants. That is significantly more than the 1000 claims cited in the original High Court ruling that found Southern Response behaved in a deceptive way when settling
claims. While initial cost estimates were around $900 million, that's now just the tip of the
iceberg.

In

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