Lawyer Misled Visy Litigants

Sydney Morning Herald

Wednesday April 30, 2008

Elisabeth Sexton

THE plaintiff law firm Maurice Blackburn has been chastised by the Federal Court for an "important misrepresentation" about the damages that could be awarded to cardboard-box customers of Amcor and Visy Industries claiming to be cartel victims.

Justice Brian Tamberlin yesterday ordered the firm to publish advertisements that correct two misleading statements by the Sydney principal Ben Slade, and that say it is difficult at this stage to put a figure on likely damages.

The judge also extended the time to opt out of the class action by a month, to May 30.

Maurice Blackburn agrees Mr Slade incorrectly attributed statements to the Australian Competition and Consumer Commission in two media interviews.

Mr Slade said the regulator had alleged last year that Amcor and Visy had overcharged by between 8 and 23 per cent. He also said in the interviews that the cartel could have taken $1 billion from the Australian economy over five years, and "we've been saying publicly that we think this case is worth between $200 and $300 million".

Justice Tamberlin said the comments could have misled customers of Amcor and Visy while they were deciding whether to join the class action run by Maurice Blackburn or to sue independently.

"In particular, the reference to a total overcharge of $1 billion could have a significant impact on a group member's opt-out decision," the judge said.

He said the reference to the ACCC was "an important misrepresentation" because - "given its detailed knowledge of the alleged cartel arrangement, its resources and its statutory function - [the reference] would carry significant weight with the group members in this case, and perhaps engender in them an erroneous assumption that the view of Mr Slade ... is a view shared by the ACCC".

© 2008 Sydney Morning Herald

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