Former HIH Insurance Chief Executive Ray Williams had a rare court victory last week when a Federal Court class action against him was struck out due to a lack of precision in how it was laid out.

But that victory relief could be short-lived. Justice Brian Tamberlin has granted applicant Brian Johnstone, who was an HIH shareholder, leave to plead the case again.

The case centres on controversial contracts entered into by HIH and Hannover Reinsurance that allegedly could have been used in a misleading or deceptive manner.