Court trial dates set for JLT municipal class actions
Court dates have been set for local government class actions launched against JLT in both NSW and Victoria.
NSW Supreme Court Justice David Hammerschlag this month rejected JLT’s request for the matter to be discontinued as a representative action and said 25 days had been allocated for a trial starting October 11.
Quinn Emanuel Urquhart & Sullivan Managing Partner Michael Mills, acting for the municipalities, says Richmond Valley Council, as the lead plaintiff, has achieved “a significant win” in the recent ruling to the benefit of group members.
Richmond Valley began the class action on behalf of 12 local governments in 2018, with issues relating to JLT’s role under a Deed for the NSW Statewide scheme and disputed broking services.
“What will be material is whether, having regard to the way JLT conducted itself, (in respect of which there seems to be little dispute), the terms of the broking services contracts (if established), and the effect of the Deed, JLT owed to the group the obligations and duties which they assert,” Justice Hammerschlag says in the April 16 ruling.
The Victorian Supreme Court has allowed 25 days for a trial of a similar matter before Justice Peter Riordan starting August 23, with mediation scheduled in June.
Mr Mills says the action seeks to recover losses allegedly suffered by Victorian local councils, after an Auditor-General report in 2018 first identified savings achieved by municipalities that went to an independent tender of their property insurance.
“The plaintiffs, Moira Shire Council and Hobsons Bay City Council allege, based on the expert evidence served in the proceeding, that Victorian local councils could have saved, on average, 46% on the cost of their insurance between 2009 and 2019,” Mr Mills told insuranceNEWS.com.au.
JLT, now part of Marsh & McLennan, has previously said there is no merit to the allegations, and it intends to “vigorously” defend the matters.