A “flood” of St Patrick's Day fire victims class action opt out notices are expected to be filed by insurance companies with the Supreme Court today.
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Maddens Lawyers principal Brendan Pendergast said the deadline for The Sisters/Garvoc and Terang/Cobden bushfire opt outs is 4pm on Friday.
On Thursday night, Mr Pendergast responded to reports in The Standard that 46 people had opted out of the Garvoc proceeding and 113 people out of the Terang proceeding.
"As at 6.30pm on Thursday no opt out notices had been provided to Maddens Lawyers by insurers or their solicitors," he said.
"These notices are required to be filed with the Supreme Court by 4pm on Friday in accordance with court orders.
"The prescribed notices are addressed to the court, Maddens Lawyers and Powercor’s lawyers."
Supreme Court documents show Warrnambool’s Maddens Lawyers had 50 registered class action group members for The Sisters/Garvoc blaze and 131 for the Terang/Cobden class action.
Those left in the class actions run by Maddens will have to foot the firm's legal bills if the actions are successful, which already include costs for a Supreme Court special hearing expected to be about $80,000.
“Without being afforded the opportunity to inspect the opt out notices it is not possible to reconcile the number of properties for which Maddens Lawyers hold registrations with the number of people reported as having opted out," Mr Pendergast said.
"Obviously the reference to 50 registered for the Garvoc class action and 131 for the Terang class action relate to properties and not people.
"There are likely to be a multiple of two, three or even more people the subject of the reported Maddens registrations."
Mr Pendergast said there had been strong community support for the two class actions.
"Most fire victims who have registered with Maddens Lawyers expressing their desire to remain in the class actions," he said.
Mr Pendergast said he trusted all parties involved, including the numerous insurers, would act on and honour the wishes and instructions of fire victims.
He said that there are a number of fire victims who had considered their options and instructed that they were content to be opted out of the class action and to seek compensation for their losses through the avenue proposed by insurers.
“We respect that decision taken by those fire victims and wish them well in their pursuit of fire losses," he said.
"Unfortunately, at present, we have no way of reconciling the media-reported opt outs with fire victims in that category.
"For example we do not know whether a married couple impacted by the fire is regarded as one opt out or two.
"It is regrettable that the parties responsible for producing the opt outs, if they in fact exist, have made this disclosure to the media without first informing the solicitors on the record.
"It is relevant to our role in managing the class actions and informing group members.
"Many bushfire victims have been waiting for weeks for a response from their insurer as to whether their insurer will take steps to forcibly opt them out of the class action against their wishes."
Mr Pendergast said that following the closure of the opt out period there would be substantial numbers remaining in the class actions.
"There are many class action group members who have made insurance claims and who have instructed Maddens Lawyers that they explicitly wish to remain in the class actions," he said.
"In every such instance those class action group member’s insurers have been advised by Maddens of the group member’s wish to remain as a group member in the class action.
"We are unable to identify at this time whether or not opt out notices relating to fire victims, who have instructed their insurers that they wish to remain in the class actions, have been the subject of the reported opt out notices."
Mr Pendergast said there are many fire victims who would not accept that they could be forcibly opted out by insurers.
"If that has occurred we anticipate there will be a significant backlash," he said.
"However, because the opt out notices have not been provided to the class action lawyers, it is not possible to comment further or with any particularity.
"It may be that the reported opt outs only relate to fire victims who have previously provided their consent to being opted out.”
Mr Pendergast said Maddens Lawyers commenced the Garvoc class action by writ on the March 28 and the Terang class action in the Supreme Court of Victoria on the April 10.
Hed said both matters were well advanced with directions hearings in preparation for court ordered mediations scheduled for February 6 next year.
"Both matters are fixed for trial in October 2019. If the matters proceed to trial the hearings will be conducted in the Supreme Court at Warrnambool," he said.
Mr Pendergast assured class action group members that the class actions remain on foot and would be prosecuted as expeditiously as was reasonably possible.
“For fire victims in the class actions our total focus is on them and their losses and on Powercor," he said.
"The pursuit of full recovery of all compensable loss and damage arising out of the St Patrick’s Day fires is our objective.
"These fires impacted tightly held highly productive farming land and the loss profiles include many heads of loss which are unique to the area and will require considerable attention to quantifying those claims.
"The impacts on dairy herds, productivity, genetics and consequential losses are examples peculiar to these fires.”
He added there were many heads of loss and damage suffered by Terang and Garvoc fire victims for which they were underinsured or not insured at all.
"It is critically important that those losses be recovered for fire victims," he said.
Mr Pendergast said Maddens Lawyers were a long established Western District law firm with extensive bushfire litigation experience dating back to Ash Wednesday 1983.
He said Maddens regard the current cases as "extremely strong liability cases".
It is not expected that opt out figures will be available from the Supreme Court on Friday after the deadline.