Agri investors fight back with counter claims Great Southern investors take stand
By Kate Kachor Thu 01 Apr 2010 A number of Great Southern investors will lodge counter claims against Bendigo and Adelaide Bank.
Litigation firm Macpherson and Kelley (M+K) is set to file counter claims against Bendigo and Adelaide Bank on behalf of seven of their Great Southern clients.
The counter claims come in response to writs lodged by Bendigo against nine Great Southern clients in default of their loans. M+K represents seven of the nine clients, M+K principal Ron Willemsen said.
"[The Great Southern action] is following the course of Timbercorp, which is what we always thought would happen. It's just that it has taken longer to get to this point than what the Timbercorp one did," Willemsen said.
"Each of them [the clients] are defending and filing a counter claim. In the counter claim we're seeking damages and a declaration that the subject loan agreement is void or unenforceable."
The counter claims are expected to act as an introduction to the firm's proposed 1594-member class action, as it worked with its Timbercorp action, Willemsen said.
"Eventually, in Timbercorp, the court realised the efficiencies involved in having the litigation proceed to a class action. We expect the same will happen with Great Southern, so that you get one court proceeding determining common issues of fact and law that affect all investors in the relevant schemes and all borrowers from those associated financiers," Willemsen said.
M+K gained Supreme Court approval to commence class action proceedings against Timbercorp last week.
The firm expects to lodge the counter claims in the coming weeks.
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