The EQC Action Group, representing 98 Canterbury homeowners, has claimed a “landmark settlement” with the New Zealand Earthquake Commission (EQC) on the eve of its bid for a declaratory judgement in the High Court.

But the EQC says it is nothing of the kind. The commission has retaliated with a statement in which it “rejects the action group’s claim that it has won a landmark settlement”.

Instead, it counters, the “agreement confirms the EQC’s position”.

The sparring statements refer to an official joint statement that set out an agreed understanding of the EQC’s obligations under the EQC Act.

The homeowners say the settlement for the first time clarifies the EQC’s obligations and sets out their full entitlements, “removing ambiguity and inconsistency”.

EQC Action Group Chairman Warwick Schaffer says the settlement is “a huge victory for the group and will have far-reaching consequences for all EQC claimants”.

“Group members have been working with [law firm] Anthony Harper for three years to achieve this agreement with the EQC,” he said.

“It took getting to the court steps, but now the EQC has worked co-operatively with us to reach this agreement and we hope the commission will continue to do so, to quickly resolve our members’ claims.”

The group filed its action in the High Court in November last year, seeking clarification on specific interpretations under the EQC Act.

One of these related to Ministry of Business, Innovation and Employment guidelines on re-levelling damaged floors. The settlement with the EQC states that rather than rely on interpretations of the ministry’s guidelines, the EQC must return floors to a condition substantially the same as when new.

Similarly, the joint statement stipulates that homes must be repaired to a condition substantially the same as when new, rather than their condition prior to earthquakes.

Anthony Harper’s action was an application for declaratory relief. Unlike other group actions against insurers, the 98 homeowners were not seeking damages. Their aim was to clarify what the EQC’s obligations are under the Act.

EQC Acting CEO Bryan Dunne insists the joint statement “reaffirms” the commission’s approach to assessing and settling building claims.

“It does not require the EQC to make any changes to its policies as a result of the concerns raised by the action group,” he said.

“From the EQC’s perspective, the statement makes it clear that the principles that have always guided its policy for assessing and settling building damage claims meet the requirements of the EQC Act.”

Mr Dunne says the commission has always been prepared to engage directly with homeowners and resolve their individual concerns.

“A declaratory judgement was never going to resolve the individual concerns of these homeowners,” he said.