Investors involved in a Great Southern class action suit against Bendigo and Adelaide Bank have experienced a setback after a court called for further changes to their statement of claim.
Yesterday, a Victorian Supreme Court judge raised concerns over litigator Macpherson + Kelley's (M+K) amended statement of claim.
"There were some reservations that the judge had in relation to paragraphs 16 to 24 in terms of the form in which the allegations are made as to whether both companies, Great Southern Finance Pty Ltd and Great Southern Managers Australia Limited, were primarily liable together," M+K principal Ron Willemsen said.
"The court wanted further consideration to be given to the formulation of the correct wording and then to consult with the barristers of the opposition parities and come back to the court for the judge to say whether he regarded the updated version as acceptable or not."
Willemsen said despite Bendigo and Adelaide Bank claiming the further amendments as a rejection and victory, the case is by no means over.
"It's by no means final, by no means a definite rejection," he said.
"At best it's a temporary reprieve to tighten up the wording of what are going to be fundamental paragraphs within the claim."
Willemsen said the parties will return to court on 10 February 2011, at which time M+K will present a "slightly modified version" of the statement of claim.
In a statement to the market last week, Bendigo and Adelaide Bank said the court had rejected M+K's statement of claim.
"Surely borrowers would have expected M+K to put its best argument forward first, so as to reduce the time and money spent on legal proceedings," Bendigo and Adelaide Bank managing director Mike Hirst said.
"After being knocked back in October, you would have thought M+K would have provided a better argument today, but now M+K will be spending more of their clients' money having a third bite of the cherry."
