Vic: Esso set to join other parties to class action

AAP General News (Australia)
04-21-1999
Vic: Esso set to join other parties to class action

By Heather Gallagher

MELBOURNE, April 21 AAP - Esso has had a minor victory in its long running and complicated
gas crisis damages case, billed as Victoria's largest class action to date.

The civil litigation, brought by firms Maurice Blackburn and Slater & Gordon, is seeking
more than $1 billion in compensation on behalf of all Victorian gas consumers who allegedly
suffered financial losses in the 10-day gas stoppage last year.

For the fifth time, Justice Ron Merkel of the Federal Court told the law firms to change
their statement of claim, describing part of it as "deficient".

Meanwhile, Esso has indicated it would seek to share the load of the case, indicating it
might bring the State Government, gas network manager VENCorp, the Regulator General and other
gas distributors and retailers into the proceedings.

The company must notify the court of the parties it intends to join as co-respondents on
May 14.

Justice Merkel, in a seven page judgment, granted a series of requests from Esso that parts
of the applicant's pleadings be struck out; with new pleadings to be lodged with the court by
April 28.

He said a plea alleging misleading and deceptive conduct through Esso's "mere silence" was
deficient.

And another plea which said alleged breaches of a duty of care cause the economic loss were
too vague.

However Bernard Murphy, a partner with Maurice & Blackburn, speaking on behalf of his own
firm and Slater & Gordon, described today's hearing as another "green light" for the gas class
action.

"Esso have stopped saying this is not our fault, what they're starting to say is it's
everybody else's fault too," he said.

"Counsel assisting the Royal Commission have made a submission to that commission that Esso
has been utterly negligent in its conduct at the Longford gas plant and in that context Esso
is wriggling to get off the hook by joining other parties.

"Esso's confidence in its case is crumbling," he told reporters.

Esso spokesman Ron Webb said there was no chance of compensation outside of court and Esso
was appealing the class action.

"Our confidence is not crumbling - we were pleased again today to have the pleadings struck
out because they were not properly constituted," he told AAP.

Esso's appeal against a decision to allow the class action to go ahead will be heard by the
Full Bench of the Federal Court on May 11.

AAP hmg/jlw/cjh/de

KEYWORD: GAS LEGAL

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