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Court decision clears way for cladding class action to continue

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A class action seeking product liability damages from a cladding maker has scored a “major win” in the Federal Court of Australia, paving the way for the lawsuit to continue, litigation funder Omni Bridgeway says.

German manufacturer 3A Composites, one of two respondents named in the class action, had submitted that the proceeding should no longer continue or alternatively, there should be a cap on the number of people who are entitled to participate.

But the court has rejected the submission, which means the plaintiffs can proceed with the class action against the maker of Alucobond PE and Plus cladding, Omni Bridgeway says.

“This is a major win for the claimants and means they can continue to pursue compensation from the manufacturers,” Investment Manager Gavin Beardsell said. “We are delighted with the Federal Court’s decision.”

Mr Beardsell told insuranceNEWS.com.au the next step of the class action will see the parties confer to identify an interim set of questions to be determined at the initial trial as well as the form and scope of discovery.

The class action against 3A Composites and Sydney-based HVG commenced last year and last February, it gained approval from the court to also seek damages for false or misleading representations.