Southern Response – post Avonside Holdings- slow payer


On 1 October 2014 the Court of Appeal said that Southern Response was liable to pay professional fees of 10% and a contingency of 10% as part of a rebuild cost; costs in the Court of Appeal and that the High Court order of “no costs” must change.  Southern Response has not yet paid the increased judgment amount of a further $214,934.14.  A statutory demand was served on it on 23 October 2014.  Southern Response eventually paid the costs in the Court of Appeal of $17,780 only after being served with a statutory demand.  Notwithstanding the Court of Appeal directive about costs in the High Court and the success of Avonside in recovering over $400,000 more than it was ever offered by Southern Response, Southern Response still refuses to pay any costs in the High Court.  So the High Court will have to determine costs.  After the High Court decision in Avonside, insureds were told that in reliance on the High Court decision it would not pay a contingency and professional fees.  Presumably now being a responsible government entity it will respect and follow the Court of Appeal decision.  I will hold my breath.