Former clients of failed advice firm Storm Financial are awaiting the outcome of a closed hearing between the legal teams of Slater & Gordon and Commonwealth Bank of Australia (CBA) before deciding whether forming a class action is the next step towards compensation.
The closed hearing, to be held on 29 November, is part of the CBA resolution scheme. It will be heard by retired High Court Justice Ian Callinan, former Federal Court judge Roger Gyles and Robert Gotterson QC.
Both margin loan and investment property and retail loan claims would be heard on that date, Slater & Gordon practice group leader Damian Scattini said.
Despite Slater & Gordon settling more than 50 Storm-related claims, Scattini could not comment on whether he or the firm were close to settling further claims.
For Storm clients, the hearing offered a greater level of anxiety, Storm Investors Consumer Action Group (SICAG) joint chair Mark Weir said.
“Presumably if it goes in our favour then the bank are committed and bound by that decision. If it goes against us then obviously we have to think about what plan B might be,” Weir said.
“Obviously we’re not bound by it – we could take the issue to a legitimate litigation challenge if necessary.”
Meanwhile, former principal of Storm Financial’s Cairns office Gus Dalle Cort has hit out at ASIC over the regulator’s alleged lack of assistance to ex-Storm clients.
“When you have a federal senator making damning statements defending the CBA openly, then he has lost sight as ASIC has in its endeavour to do good and protect,” Dalle Cort said.
“ASIC is standing by while CBA through a fast-track resolution process are trying to reduce their litigation exposure by having Storm Financial clients sign off on deals that may appear to be the only option that they have.
“Clients are doing deals because ASIC have allowed CBA a free run rather then protecting the very subjects they are supposed to defend.”
Dalle Cort’s remarks come in response to comments made by Parliamentary Joint Committee chair Bernie Ripoll earlier this week, in which he declared a legal claim by Storm founders seeking $17 million against CBA as “a bit rich”.
“It is crystal clear this man should resign from his position as oversight to ASIC. ASIC cannot have such a biased view placed upon it from a government point of view,” Dalle Cort said.
