Ex-Lloyds of London broker backs class actions against CBA
A funding line in the tens of millions may soon be in place for the promotor of a number of class actions separately against banks and their regulatory authorities, in long mooted claims centred on the allegedly reckless lending practices of Australian banks over more than two decades.Roger Brown, the entrepreneur behind an action likely to be filed with the Federal Court of Australia, is spending this month in Australia working with two leading law firms that will register claimants and coordinate litigation."There is little doubt the funding will be in place by the first week of November, and then it's a case of let's move quickly," Brown told Banking Day yesterday.A retired Lloyd's of London insurance broker, and insurance law consultant based in London, Brown has over seven years aired his passion for the topic of Australian bank malpractice on Twitter under the handle @bankcustomers.With no move yet to commence preliminary discovery, Brown said "we have got huge amounts of documents which have come to us via MortgageDeception.com from all types of sources."Many varieties of class actions are sprouting in Australia against banks or financiers, the bulk of them inspired by disclosures at the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.Brown said "we are now reaching the stage where we are getting to five sub-sections of these class actions, in addition to the numerous substantial individual actions."With six years of work so far on this matter, Brown said he and his backers aimed to minimise disruption by other law firms pushing representative proceedings that cross over with his material.In late August, the Full Court of the Federal Court of Australia transferred four representative proceedings against AMP to the Supreme Court of New South Wales, which will now supervise their consolidation into one proceeding, an outcome that may erode any profits likely to be earned by the sponsors.The four were: the Wileypark proceeding filed in May, the Georgiou proceeding filed the same month, the Fernbrook proceeding filed in June and the Komlotex proceeding filed later than the other three. All four proceedings were open class proceedings.Chief justice James Allsop wrote in a judgment that "the running of multiple actions by different lawyers, with different funders is, in principle, potentially inimical to the administration of justice and, in particular, potentially inimical to the interests of group members, and potentially oppressive to AMP."Slater & Gordon early this week kicked off publicity for an action under the slogan "Get your super back", also aimed at AMP and potentially the model for further claims against bank-owned retail superannuation funds.Brown is himself working to join in the fashion for restitution claims against banks in Britain, relating to questionable mortgage lending. "Our UK group action is reaching the stage of the appointment of the law firm to run the matter," he said.