Allens

A judge overseeing four COVID-19 business interruption class actions has questioned a decision by insurers to use ten test cases to resolve the issue of whether they had to indemnify policyholders instead of a class action, which would have been binding. 

Despite a judge’s complaint that class action costs are generally “out of control”, the law firm that secured a $192.5 million settlement and earned about $25 million in fees in the Montara oil spill case has won approval for more fees — these ones incurred in a hearing to determine how the settlement spoils should be divided.

SkyCity may be the first company to test the strength of AUSTRAC’s claims in court, according to a judge who recently said in a separate case that the regulator’s habit of agreeing to penalties could give rise to a “moral hazard”.

A judge has approved a $450 million penalty put forward by Crown Resorts and AUSTRAC despite reservations about evidence going to the casino operator’s financial position.

The judge asked to approve a proposed $450 million penalty in AUSTRAC’s case against Crown Resorts has questioned whether the practice of regulators settling enforcement action ahead of trial gave rise to a “moral hazard” problem.

A proposed interest-free payment plan for a $450 million penalty agreed to between Crown Resorts and AUSTRAC has been questioned by a judge, who said it would have “the Commonwealth of Australia act as the Crown’s banker” for two years.

The NSW Labor Party has agreed to drop its case against law firm Holding Redlich for providing allegedly negligent advice over a $100,000 illegal cash donation delivered in an Aldi shopping bag.

A judge has found that preliminary discovery does not extend to information about the likely recovery of a claim, rejecting an argument that the relevant rule allows prospective plaintiffs to test whether litigation will be “worthwhile”.

The new federal corruption watchdog that commenced operating Friday will likely turn its sights first on the award of public grants, and is expected to face a “huge backlog” of referrals. 

A judge overseeing a shareholder class action against Insurance Australia Group says more evidence is needed to back the applicant’s bid for an order giving lawyers 30 per cent of any recoveries.