The High Court is allowing a class action by policy-holders against the insurance company Southern Response to go ahead.
Justice Gendall approved the case going ahead in a decision released today.
Lawyer Grant Cameron filed the case on behalf of 47 policy holders who battled the insurance company over Canterbury earthquake claims.
In his decision, Justice Gendall said the policyholders made the case that Southern Response had engaged in a deliberate strategy designed to deceive them, and deny their claims.
He said a reasonable argument was made, which should be properly aired and determined by the court.
Mr Cameron said he was pleased with the judge's decision.
"It's been a very prolonged process, and we're very happy that the courts have accepted that this kind of case can proceed."
One of the claimants, Brian Kinder, said he was excited the action would proceed.
"Basically Southern Response have just been categorically refusing to settle us, all the way through. We've spent countless hours on it, and there have been countless tears at home, and these people just do not know what they do to family life."
The court would allow other policyholders to join the action if they wished, with a deadline of 16 April.
Southern Response said it was disappointed by the decision and was considering an appeal.
The company was set up to settle outstanding AMI claims when that insurer went bust.
Southern Response said earlier class action would only delay the resolution of the individual customers' claims.
