Quake Outcasts v The Minister for Canterbury Earthquake Recovery, The Chief Executive of the Canterbury Earthquake Recovery Authority, Fowler Developments Limited - SC 5/2014

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Summary

Civil Appeal – Judicial review – Whether the Court of Appeal erred in concluding that the Government had lawfully established the residential red zone in Christchurch through the use of its common law or third source powers – Whether the Court of Appeal erred in finding that the creation of the residential red zone did not affect the legal rights and liberties of the affected residents such that recourse to the third source was available – Whether the Court of Appeal erred in finding that the Government’ s offers to purchase the properties of the applicants and the third respondent under s 53 of the Canterbury Earthquake Recovery Act 2011 (Act) could be implemented without compliance with the regime set out in the Act for a planned and co-ordinated earthquake recovery approach – Whether the Court of Appeal erred in finding that the different treatment of the applicants and third respondent was not in itself a reviewable error as there was a rational basis for differentiating between insured and uninsured land owners. [2013] NZCA 588 CA 571/2013

Result

A The applications for leave to appeal in SC 5/2014 and SC 8/2014 are granted.
B The questions on which leave is granted are:

Were the offers made by the Crown to Residential Red Zone property owners under s 53 of the Christchurch Earthquake Recovery Act 2011 lawfully made? In particular:
(i) Was there a material failure to comply with the Act?
(ii) Was there a rational basis for the distinction drawn between those owners who were insured and those who were uninsured?
5 May 2014
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A The appeal is allowed in part.
B There is a declaration that the September 2012 decisions relating to uninsured improved residential property owners and to vacant residential land owners in the red zones were not lawfully made.
C The first and second respondents in SC 5/2014 and the respondent in SC 8/2014 are directed to reconsider their decisions in light of this judgment.
D Leave is reserved to apply for any supplementary or consequential orders.
E The first and second respondents in SC 5/2014 are to pay to the appellants costs of $40,000 plus usual disbursements. We certify for three counsel.
F The respondent in SC 8/2014 is to pay to the appellant costs of $20,000 plus usual disbursements. We certify for two counsel.
13 March 2015

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