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BI class actions set for tussle over a way forward

The Federal Court has scheduled a two-day hearing for July to decide whether four business interruption class actions filed by two legal firms should instead proceed as individual claims, as sought by insurers.

The expected two-day hearing before Justice Michael Lee is set for July 26, with the court moving ahead with the disputes following the conclusion of the industry legal test cases last year.

Gordon Legal Commercial Law Partner James Naughton says there are benefits for class action members not having to “fend for themselves” individually against “well-resourced” insurers and in the firm’s experience “de-classing” actions are rarely successful.

“We intend to continue to advance the rights and interests of the lead applicants and group members in the class action, including by resisting the defendants’ declassing application,” he told insuranceNEWS.com.au.

Gordon Legal has filed in Cody Gemtec Retail t/as the National Opal Collection v the underwriting members of Syndicate 2003 at Lloyd's; and Strand Fitness & ors v QBE, while Slater & Gordon has filed CMC Hospitality v Insurance Australia; and Vicki Field Swim School v Hollard.

Separately, a further Federal Court case management hearing is also scheduled for July 26 for a dispute filed by Shine Lawyers on behalf of the operator of Jetts Fitness Ocean Gove, which is contesting a claim denial by Hollard.