Flammable cladding class actions escalate

Apartment owners involved in two combustible cladding class actions have been given permission by the Federal Court to expand their claims under Australian Consumer Law. Vitrabond supplier Fairview Architectural is the subject of one of the class actions, while Alucobond manufacturer 3A Composites and supplier Halifax Vogel Group are the subject of the other class action. Both actions are being backed by litigation funder IMF Bentham:

The expanded claims against Alucobond supplier Halifax Vogel Group and manufacturer 3A Composites as well as Vitrabond supplier Fairview Architectural add to the existing claims under Australian Consumer Law that the combustible panels failed to meet acceptable quality standards. They add to pressure the IMF Bentham-backed claimants are putting on the respondents to settle the case that does not kick off until late next year.

“These are additional claims that the claimants might be successful on subject to establishing the manufacturers’ liability,” said Gavin Beardsell, an investment director of litigation funder IMF Bentham…

Mr Beardsell [said]… the funder had had “large numbers” of buildings register for the action.

So that’s the two biggest suppliers of flammable cladding embroiled in class action lawsuits.

If they lose these cases, then the ramifications could be huge, possibly resulting in many millions of dollars in compensation being paid to owners of thousands of apartments across Australia.

Surely other suppliers will also then be dragged into litigation.

Unconventional Economist
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  1. Great timing.
    Everything is so rosy in the world at the moment.

    Just another domino lining up

  2. I bumped into a firey I know who was out doing some visual inspections in the CBD. He reckons fixing this will take over a decade maybe 2. One of his quotes was we don’t have anywhere near enough scaffolding in this country to remediate in under a decade (or kiwi riggers I would add).

    Let’s just hope there are no big fires in the 10 – 20 years it will take to remediate.

  3. Aaaaaaaaaaaaand they shut.

    Oh look – they opened again called “something, slightly, imperceptibly, different”……..

  4. Looking deep into my crystal ball I see Flames but it’s not from from building themselves burning, it’s something else that’s burning, but wait I see also rebirth and from the ashes they are born again.
    From experience the builders are at least two steps ahead of the lawyers, as for the courts well I predict that they’ll be knee deep in Phoenix ashes.