The Federal Court has refused a broker’s application to represent her business in its action against Steadfast, QBE and Allianz.

Cynthia Yap sought an order that would remove the requirement for Perth-based Dynamic Insurance Services to be represented by a lawyer, and to allow her to represent the company of which she is sole director.

Dynamic and Ms Yap are suing Steadfast and the two insurers over alleged anti-competitive conduct, abuse of market power and unconscionable conduct. The three companies deny the accusations.

Federal Court rules allow a person to appear unrepresented but say a lawyer must represent a corporation.

Although the court can dispense with the rule, Justice Michael Feutrill says the public interest calls for disputes to be resolved as quickly, inexpensively and efficiently as possible, and in an adversarial legal system this is best achieved when skilled professionals present cases. He notes “a person represented by a non-lawyer is exposed to the uninsured risks associated with untrained and unskilled services”.

Ms Yap told the court she has the financial capacity to hire a lawyer and could loan Dynamic the funds.

Justice Feutrill says the case involves complex matters of competition law and Ms Yap’s statement of claim has deficiencies likely to be exploited by the other side.

“As a non-lawyer, it is inevitable that Ms Yap will encounter difficulties pleading and articulating sustainable causes of action that, irrespective of the underlying merits of the claims, is likely to lead to delay, increased cost and inefficiency in the conduct of the proceeding,” the judge said.

He says it is not in Dynamic’s best interests to be represented by a non-lawyer.

Dynamic launched the action after its Steadfast membership was terminated in January. QBE and Allianz ended their broker agreements with the company shortly after.

Dynamic is seeking more than $3 million in compensation.

Read the judgment here.