An insurance company linked to Great Southern may appeal a Federal Court judgement that has allowed a class action to proceed.
Investors involved in a class action against failed agribusiness firm Great Southern may face a delay in proceedings if the firm's insurance company decides to appeal.
Great Southern Managers Australia Limited's (GSMAL) insurance company has given notice to litigation funder IMF Australia of its wish to appeal a class action judgement handed down last month.
"They gave notice of appeal but that's not the same as appealing and they had a period of 35 ordinary days from the date of the judgement. If they appeal, then they appeal," IMF Australia managing director Hugh McLernon told InvestorDaily.
"Until we know whether they are going to appeal or we get access to insurance documents it would defeat the whole purpose to take another step."
On 17 March, the Supreme Court of Western Australia allowed an 800-strong class action case against GSMAL to proceed and ordered the firm's insurance company to provide copies of all insurance documents to IMF.
In an email to class action members, McLernon said the insurance company is not appealing against leave to proceed but only in relation to the disclosure of the insurance policies.
"The fact the insurers are acting in this manner and instructing the lawyers for Great Southern indicates to us that there is likely to be sufficient insurance to ensure that all of our clients are paid any judgement which might be awarded to them by the Supreme Court," the email said.
"The extent to which the insurer is trying to prevent disclosure of the insurance documents also supports that conclusion.
"Once we get access to the insurance documents and learn whether there is to be an appeal then the solicitors will serve all of the documents on the company and its directors."
The class action against GSMAL involves 800 investors in the firm's Cattle Projects 2006 and 2007.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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