After another unhappy client bailed out of a proposed class action seeking compensation from Claims Resolution Service for allegedly doing a poor job in settling Christchurch earthquake insurance claims, Claims Resolution got a freezing order over both Karlie Smith’s home and the proceeds of sale to recover unpaid fees.
Claims Resolution Service Ltd offered a ‘one-stop shop’ service for Christchurch homeowners disputing compensation offered for insured earthquake damage. Customers allege that claims were settled at an undervalue and that Claims Resolution prejudiced customers with a sweetheart deal passing all legal work onto a single law firm.
Ms Smith was initially named as the nominal representative plaintiff in a class action against Claims Resolution. She has since withdrawn. Meanwhile, Claims Resolution is pressing for fees owed on the previously disputed work completed on her behalf. Interest is running on unpaid invoices at two per cent per month. Claims Resolution sprung into action after receiving a series of emails in late 2021 from Ms Smith stating she was broke and had sold her house. Within ten days, Claims Resolution had a High Court order imposing a freezing order over both her home and the proceeds of sale, protecting a sum of $200,000. The amount actually owed for unpaid fees has yet to be settled.
Smith v. Claims Resolution Service Ltd – High Court (18.11.21)
22.005