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ARTICLE · 12 APRIL 2010

Insurance: Class Actions – Discovery of Documents From Group Members to Aid Settlement Discussions

the A discussion of the difficulty a defendant of a class action faces when seeking critical information concerning the quantum of a group member's claim.

AustraliaInsurance

Class actions involve a named representative plaintiff suing on behalf of a defined group or class of persons. The group members may not be identified by name in the proceeding. Such claims frequently seek substantial amounts of compensation. An important practical issue arose in this case which will be of interest to insurers. This was whether the group members in the class action (as distinct from the representative who was the named applicant in the proceeding) were required to provide discovery to the respondents. This included discovery of documents relevant to assessing the quantum of the claims of group members.

Facts

In brief terms, the proceeding was a class action brought by various shareholders against Multiplex companies concerning the alleged failure to make adequate disclosure of losses suffered by the Multiplex companies on the Wembley Stadium construction project. A number of institutional investors were amongst the group members. Multiplex sought

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