UPDATED 3.24PM: Ninety-eight Canterbury homeowners have won a landmark settlement with EQC, following a bid for a declaratory judgement in the High Court.

The settlement clarifies EQC's obligations under the Act, and removes reliance on MBIE guidelines.

Previously EQC has used phrases such as 'pre-earthquake standard' and 'like for like' when describing their obligations which created the impression that the standard EQC had to meet was something less than as when new.

This settlement clarifies that the standard required is higher.

Unlike other group actions against insurers, the group was not seeking damages, rather the aim was to clarify what EQC's obligations are under the Act.

EQC said the there was no "material disagreement" between it and the action group.

EQC Group Action Committee Deputy Chair Craig Edwards said it's a major vindication for all Canterbury homeowners who have been battling EQC.

"The implications of this are going to be quite significant," he said. "They've accepted that their interpretation of the obligations was wrong, and I think we're going to have many homeowners in Canterbury having a very close look at their repairs."

Acting CEO Bryan Dunne said from EQC's perspective, there is no change to how they run, saying it's the same criteria they've gone by since they started.

Mr Dunne said how EQC applies the principles in the settlement to each claim will depend on a raft of factors specific to each home.

But Labour says despite winning the legal battle against EQC, the battle isn't over for the Christchurch homeowners.

As repairs of the 98-homeowners involved in the group action will be reassessed, there's a high chance this will push their claim over the cap and onto insurers, which Labour's Megan Woods said will mean more waiting.

"We're in this mess, potentially with people having to go through another round of their homes being repaired, because Gerry Brownlee has refused to listen."