Legal Practice Intelligence has previously reported on the dispute resolution scheme that Slater & Gordon negotiated for Storm Financial victims who had loans with the Commonwealth Bank.
The dispute resolution scheme came to the attention of Stewart Levitt, principal of small firm Levitt Robinson, who formed the view that Storm Financial victims could do a lot better than what was provided for in the scheme.
After many months of lead-up, Levitt Robinson has now launched the threatened class action by filing a Statement of Claim in the Federal Court.
The class action, while critically important to the parties involved, will also be significant for the reputations of the law firms representing them.
The commencement of the class action has again put the spotlight on the question of whether Slater & Gordon negotiated a good deal for Storm Financial victims.
Successful litigation by Levitt Robinson could turn out to be a disaster for Slater & Gordon. The firm could suffer a serious blow to its reputation which may affect its ability to generate new work of this kind. Stewart Levitt is also putting his reputation on the line.
It is hard to see how this case can play out without major gains and losses to the reputations of the lawyers and law firms involved.