Federal Court confirms that mediation will proceed without “class closure”
At a hearing on 3 September 2024, Justice Lee confirmed that the mediation in the Walton Construction Class Action will proceed with the parties to start settlement talks as soon as possible in advance of the mediation hearing scheduled before the Hon. Michael Sifris KC on 23 October 2024.
The Court refused NAB’s request to order “class closure” prior to the mediation. This means that there is no requirement for group members (i.e. the Walton Construction Group’s creditors) to formally register their claim at this stage. Instead, group members should:
- provide their up to date contact details to William Roberts Lawyers; and
- look out for the Federal Court’s Opt Out Notice, which will be published on or around 6 September 2024.
Group Member contact details
The liquidators of the Walton companies have provided William Roberts Lawyers with copies of the creditor listings and the proofs of debt that have been filed since the companies entered insolvency in October 2013; however, since then, many creditors will have changed their contact details.
Group members are encouraged to provide their up to date contact details to William Roberts Lawyers by email on enquiries.waltonca@williamroberts.com.au . This will enable William Roberts to communicate with you about the status of the class action proceedings and of your claim as a group member.
If you believe you are a creditor but did not file a proof of debt, please contact William Roberts Lawyers as soon as possible to provide details of your claim.
William Roberts Lawyers’ privacy policy applies to the information you provide. Click here to view a copy of this Privacy Policy. Providing this information does not bind you to any contract or commitment, and also does not create any solicitor-client relationship with the firm.
Background to the Walton Construction Class Action
The Walton Construction Group collapsed in October 2013, affecting some 1,650 small business including principals, trade creditors and subcontractors across Queensland, New South Wales and Victoria, who lost more than $100 million. The circumstances of the collapse of the building group have been the focus of several Federal and State Parliamentary inquiries into insolvencies, administrations, and phoenix activities in the Australian construction industry, been the focus of numerous print media reports and the subject of several Australian Broadcasting Corporation investigative journalist enquiries on national television.
The class action proceedings (VID993/2019 ) were commenced in 2019 by the applicant, Williams & Kersten Pty Ltd (W&K), against National Australia Bank Ltd (NAB), and are continuing before the Hon. Justice Michael Lee of the Federal Court of Australia. On behalf of itself and the group members, W&K allege that NAB breached the Australian Consumer Law and committed an equitable fraud on the creditors by engaging in certain conduct between 2008 and 2013.
Previous events in the Walton Construction Class Action are summarised below.
1 August 2024
The parties in the Walton Class Action confirm that Williams & Kersten Pty Ltd has agreed to conduct a mediation with National Australia Bank (NAB) on 23 October 2024, with the Hon. Michael Sifris KC (former Judge in the Supreme Court of Victoria) acting as independent mediator. Media Release 16 May 2024
The latest orders of the Court, confirming the mediation date and other procedural steps, were made on 1 August 2024 and can be viewed on the Federal Court portal.
16 May 2024
Subcontractors Alliance confirms that Williams & Kersten Pty Ltd, the Lead Applicant in a Federal Court class action against National Australia Bank (NAB), seeking to recover more than $100 million on behalf of the unsecured creditors of the collapsed Walton Construction Group, has obtained orders allowing it to file and serve a second further amended statement of claim.
The new statement of claim, served on NAB on Tuesday following a decision by Justice Lee, details further allegations about the bank’s conduct as financiers of the Walton Group which have emerged following documentary discovery.
The latest claim alleges that NAB’s misconduct commenced in 2008 and 2009, when the bank assisted the Walton companies to enhance their balance sheets through transactions designed to create assets worth $7 million which enabled Walton to continue to qualify for building licences and continue operating in Queensland and Victoria. In reality, the $7m assets belonged to NAB not Walton, and NAB’s involvement allowed Walton to produce false and misleading financial statements and continue trading for 5 more years, the claim alleges. The new statement of claim alleges knowing involvement by the bank in misleading and deceptive conduct, and equitable fraud, in addition to the existing claims for unconscionable conduct by the bank for its role in the “restructuring” schemes which occurred in 2013 shortly before the Walton group collapsed into insolvency.
8 December 2023
William Roberts Lawyers, a litigation and class action law firm, with offices in Sydney, Melbourne, Brisbane and Singapore are now acting for the claimants in the class action to recover the losses, having taken over from the applicant’s previous solicitors Redmond & Redmond. At a hearing on 8 December 2023, the Federal Court of Australia granted the applicant until the end of February 2024 to revise its statement of claim.
If you have any questions please contact William Roberts Lawyers by email on enquiries.waltonca@williamroberts.com.au or phone (02) 9552 2111.
