No need for Bendigo to settle Great Southern class action

Bendigo and Adelaide Bank may have erred on the side of generosity - and  burnishing its own reputation -  in electing to settle a long running legal wrangle over agribusiness loans connected to the Great Southern timber plantation schemes.

The bank and the plaintiff lawyers last week outlined terms of the settlement that provides for a payment of A$23.55 million, expected to be funded through an insurance claim once a scheme of arrangement comes into effect.

That deed also confirmed that loans with Bendigo and Adelaide Bank are valid and enforceable, accrued standard interest on loans is payable; and overdue interest that has been accrued and unpaid as at the date of approval has been waived.

The bank, however, need not have settled.

The Supreme Court Of Victoria late last week produced, in full, the final and previously unpublished ruling of Justice Clyde Croft, which was prepared but not released in July this year. The court deferred publication of the judgment after the parties finally sought a settlement.

In that ruling Justice Croft summarised the case this way:

"In relation to the proceedings which are set down for trial on all issues, the court finds that the relevant plaintiffs have not established:

-- that they relied on the relevant product disclosure statements;

--  that they have suffered any loss or damage;

-- nor, if it were established that any loss and damage had been suffered:

-- that their loss or damage arose because of being given a 'defective' PDS; or

-- that the defendants (Bendigo Bank) are liable for their loss or damage."

The bank thus secured a comprehensive victory in the original trial.