New Zealand’s Earthquake Commission (EQC) has agreed to cover a homeowner’s repair costs on remaining earthquake damage in what is expected to form a framework for settling 54 other cases.

The longstanding Gibling family case was set to be heard in the High Court on Wednesday. The EQC says a new government policy has allowed it to offer a solution out of court to those homeowners who have bought an earthquake-damaged home that was poorly repaired or needed repairs that exceed the $NZ115,000 ($109,069) liability cap.

“The payment does not mean that EQC accepts liability for the Giblings’ outstanding earthquake damage but it is simply the best outcome for the family to get on with their lives,” EQC Deputy CEO Renée Walker said.

The Gibling family paid for its case through a litigation funder, and was represented by Shine Lawyers, which has 54 similar cases registered.

“Many of our clients faced financial ruin due to the unrepaired damage on their houses, and we now have a process under way for these people to be compensated,” Shine MD Angela Parlane said.

The details of the payment are confidential.

The EQC continues to register other affected property owners and is assessing if they fulfil the criteria to receive a support package.