Richmond Valley Council v JLT Risk Solutions Pty Ltd

Richmond Valley Council, as representative plaintiff, brought proceedings against JLT Risk Solutions Pty Ltd on behalf of a class of local councils in New South Wales. The plaintiff and the other councils entered into a Deed with the defendant to establish a scheme for purchasing insurance and providing indemnity for public liability, damage to property, product liability, and professional indemnity. The plaintiff alleged that the defendant breached duties at common law and under the contract to recommend and arrange insurance at the best premium rates and breached fiduciary duties to act in the best interests of the councils and not prefer its own interests. The plaintiff sought a Merck order determining common questions of fact and law and a declassing order to have the proceedings heard as a representative proceeding. The defendant opposed both applications.
The court considered whether there were substantial common questions of fact and law to justify the proceedings continuing as a class action. The court found that there were identifiable common issues, such as the nature of the defendant's duties and whether they were breached. The court also found that the proceedings were appropriate to continue as a class action due to the large number of affected councils and the commonality of the claims. The court dismissed the declassing motion and granted the Merck order for certain questions to be determined at trial.

The court held that the proceedings should remain as a class action and that there were at least one substantial common question of law or fact to which the claims of the plaintiff and group members give rise. The court made orders that certain questions contained in the schedule are common to the group members and are appropriate to go to trial. The defendant's motion for declassing was dismissed, and the plaintiff's motion for a Merck order was granted in part. The final orders of the court are not stated in the text.