Allianz Class Action

Johnson Winter  Slattery (JWS) are the joint solicitors running the class action with Maurice Blackburn.

JWS has leading-edge experience in advising clients on large-scale litigation and class actions, and its litigation partners have been involved in many of the significant claims and major class actions in Australia over the last 20 years. JWS has the experience acting for both plaintiffs and defendants in large-scale litigation and class actions related to consumer insurance products, antitrust/competition, corporate, financial services and tax matters.

The Allianz Class Action was consolidated with a similar proceeding, which was commenced by Maurice Blackburn against Allianz in the Supreme Court of Victoria, being Jordan Wilkinson v Allianz Australia Insurance Ltd S ECI 2020 04230. On 15 September 2021, the Court ordered that both JWS and Maurice Blackburn act jointly for class action group members against Allianz and Allianz Life. The orders are accessible below.

On 23 September 2022, we filed an Amended Consolidated Statement of Claim on behalf of the plaintiffs and group members, which is accessible below.

On 30 September 2022, Allianz and Allianz Life filed an Amended Defence to the Amended Consolidated Statement of Claim.

On 14 October 2022, the Plaintiffs filed a Reply to the Amended Defence.

On 13 December 2022, her Honour Justice Nichols ordered that the legal costs payable to JWS and Maurice Blackburn be calculated as a percentage of the amount of any award or settlement that may be recovered in the proceeding, rather than using time-based billing (group costs order or GCO). A copy of the orders made on 13 December 2022 are accessible below.

The Court ordered that the GCO percentage be 25% inclusive of GST, and any GCO payment is to be shared equally between JWS and Maurice Blackburn. Therefore, the Plaintiffs and all group members are guaranteed to share 75% of any award or settlement that may be recovered in the proceeding.

The GCO percentage is ‘subject to further order’. The Court can adjust the GCO percentage at any time over the course of the class action, including and up to the conclusion of the trial of any settlement.

Initially, the First Plaintiff, Ms Tracy-Ann Fuller (Fuller Plaintiff) was provided litigation funding by Balance Legal Capital I UK Ltd (Balance) to pay legal costs the prosecuting the Allianz Class Action. Subsequently, the Fuller Plaintiff elected to enter into an arrangement, and a further retainer with JWS that enabled her to make an application for a GCO (JWS Further Retainer).

The JWS Further Retainer provides that JWS will represent the Fuller Plaintiff in the Allianz Class Action, and will only be paid for its fees and expenses incurred in the Allianz Class Action in the event of settlement or an award of damages in the Plaintiffs’ favour (Successful Outcome).

As part of this arrangement, JWS has been issued with a limited recourse loan by Balance (Loan). This Loan allows JWS to provide the legal services and pay for any expenses over the course of the Allianz Class Action. Balance is not entitled to claim repayment of the Loan from JWS unless there is a Successful Outcome, and any amount payable to Balance cannot exceed any amount that is payable to JWS pursuant to the GCO. Balance has no contractual recourse against the Plaintiff or group members for repayment of its Loan with JWS.

Further details about this funding arrangement can be obtained from the Funding Information Summary Statement and the Class Action Summary Statement.

If there are any further changes to the funding arrangement, group members will be notified on this website and also through other means.

There are no upfront costs payable by the group members to become part of the class action. This is because JWS will jointly represent the Plaintiffs in the Allianz Class Action, and will only be paid by the Plaintiffs and group members for its fees and expenses incurred in the Allianz Class Action in the event of a Successful Outcome and subject to order of the Court.

If the proceedings are unsuccessful, group members will not be liable to pay any of the costs of the proceedings. JWS will not be required to repay Balance for any amounts drawn under the Loan if there is not a Successful Outcome in the Allianz Class Action.

The Court has ordered a GCO which means that subject to any further Court order, JWS will be paid its fees and expenses incurred in the Allianz Class Action from any proceeds recovered on the Fuller Plaintiff and group members’ behalf, calculated as a percentage of the amount of any award or settlement. The percentage ordered is 25% inclusive of GST and will be shared between JWS and Maurice Blackburn. The Court has the power to adjust the percentage at any time over the course of the Allianz Class Action, including on a Successful Outcome.

If the Allianz Class Action is unsuccessful, the Plaintiffs and group members will not have to pay any costs to Maurice Blackburn, JWS or the defendants. By reason of the GCO, JWS and Maurice Blackburn are jointly and severally liable for any costs payable to the defendants in the Allianz Class Action.

JWS and Maurice Blackburn are also liable to give any security for costs to the defendants, if required.

The legal proceedings seek compensation for Group Members in the form of a refund of the amount paid for the products and, if applicable, any additional interest paid on the finance arising from the financing of the insurance premiums obtained by some group members.  Alternatively, a payment which reflects the difference between what Group Members paid for the policy and what it was actually worth.

The actual amount of compensation payable will depend on the outcome of the case and the circumstances of individual Group Members, and therefore cannot reliably be predicted.

The length of the proceedings is difficult to predict but the litigation is likely to last several years. It is not uncommon for a class action in Australia to last for more than two years.

Between February and April 2022, the opt out process occurred and the deadline to opt out has now passed. However, there is currently a further opt out process for certain Extended Warranty group members – see above Important update for further information.