Quake Outcasts group wins settlement with Government after long battle

Red zone properties on Kingsford St in Burwood.

A group of quake-hit Christchurch red-zoners have finally won their battle with the Government over payouts.

The group of uninsured and commercial property owners took the Government all the way to the Supreme Court to challenge its offer of 50 per cent of their property's rateable value.

After the court found in the group's favour, in 2015 the Government raised its offer to 100 per cent of the RV, but of the land value only, not the building's value.

Lawyers for Quake Outcasts - originally 46 property owners, and developer Fowler Developments - said that was still discriminatory and the group filed appeals.

Last month, the Court of Appeal released an interim decision in the group's favour, saying the offers were unfair, unreasonable and unlawful.

Now, Minister supporting Greater Christchurch Regeneration Nicky Wagner says the Crown has agreed to settle litigation with the group.

The Government has agreed to pay each of the 16 litigants 80 per cent of the pre-earthquake (2007/08) rateable value of uninsured property and a one-off payment "to account for the Court's decision and extra uncertainties and costs".

Each of the former property owners has already been paid 100 per cent of the pre-earthquake value of their land.

"As soon as we had the Court's decision, we moved swiftly to provide certainty," Wagner said.

"In saying that, the decision to settle was not taken lightly. The Government carefully considered a range of factors, including fairness, financial responsibility, protecting the value of insurance and the litigants' wellbeing."

She added: "The Christchurch quakes were like nothing we've ever experienced. The Crown purchased over 7700 properties, based on their pre-earthquake value, to help people move on with their lives. All decisions were made in good faith, with the best available information at the time."

Any other decisions in response to the Court of Appeal's judgment will be made by the Government after the election.

Grant Cameron, solicitor for the Quake Outcasts group, welcomed Wagner's "decisive action.

"It was a sad affair because it's taken nearly six years for these people to gain certainty and to be placed in the same position as other red zone residents were, all those years ago," Cameron said.

"Without being paid the value of their homes most were unable to get on with their lives but now their recovery process can commence.

"We've had very positive feedback from all group members and they are all very happy with the outcome."