Southern Response customers launch class action

A total of 47 unhappy policy holders launched the action in the Christchurch High Court led by local businessman Cam Preston. Photo / File

A group of customers who have felt "powerless and bullied" by an earthquake claims holder have today launched a class action.

A total of 47 unhappy policy holders launched the action in the Christchurch High Court led by local businessman Cam Preston.

The claim alleges Southern Response, the Crown-owned company set up to manage the insurance claims of AMI policy holders in the wake of the Christchurch earthquake, has fundamentally failed its duty to properly reinstate policy holders. Many policy holders have been waiting nearly five years to have their claims settled.

The group will be represented by GCA Lawyers, who are confident the High Court will meet the litigant's request for an opt-in order, giving other policy holders a further three months to join in the action.

GCA Lawyers principal Grant Cameron said it was very pleasing to see how his clients had responded to the filing of the class action.

"Up to now they have felt powerless and bullied. Today marks the point where, at last, they get to call the shots," he said.

Southern Response said it was aware a claim has been filed with the High Court.

"We do not accept that a class action has any merit and we will strongly defend the claim," it said in a statement to Stuff.co.nz.

"Given each homeowner's situation is different, we consider the quickest and fairest way to settle claims is on an individual basis.