JLT Class Action

Local Council Class Action against

Jardine Lloyd Thompson (JLT)

On 3 December 2018 Quinn Emanuel Urquhart & Sullivan (Quinn Emanuel) filed class action proceedings against Jardine Lloyd Thompson Pty Limited (JLT) on behalf of the plaintiff, Richmond Valley Council, and other local councils in NSW who suffered losses as a result of JLT’s failure to properly provide insurance broking services to NSW councils (the JLT Local Council Class Action (NSW)).

Similar class actions in other States on behalf of similarly affected local councils are anticipated.

The JLT Local Council Class Action (NSW) is backed by Harbour Fund III, L.P., exclusively advised by Harbour Litigation Funding Limited in the UK (Harbour).  Harbour is one of the longest established and leading global litigation funders with experience from funding more than 100 cases across 14 jurisdictions globally.

Registering your interest

NSW local councils that, at any time during the period 1 January 2009 to 3 December 2018:

  1. were provided with insurance broking services by JLT; and
  2. obtained Property and/or Public Liability and Professional Indemnity insurance through membership of the “NSW Local Government (Jardine Lloyd Thompson) Mutual Liability Scheme”,

are invited to register their interest to join the JLT Local Council Class Action (NSW)

Following registration, local councils will be able to obtain additional information regarding the class action and will be kept up to date on any key developments in the action.

Frequently Asked Questions

The action alleges that JLT breached (a) general law duties and contractual duties; as well as (b) fiduciary duties that it owed to local councils in NSW in the course of placing their Property insurance (Property) and/or Public Liability and Professional Indemnity insurance (Public Liability) during the period 1 January 2009 to 3 December 2018, and that such breaches:

  1. caused councils to suffer loss or damage (that is, JLT’s conduct caused councils to pay ‘excessive premiums’); and/or
  2. that JLT is liable to account to councils for profits that it made as a result of its breaches of fiduciary duties.

The action seeks to recover those losses for councils and/or require that JLT account to councils for any profits that it made.

The class action is not a claim against Statewide Mutual – nor does the action criticise the concept of insurance Mutuals. This is an action against JLT for its failure to properly and independently provide insurance broking and advisory services to NSW local councils. The action seeks to recover historic loss or damage from JLT, so that those funds can be redirected back into local communities.

This action does not seek to encourage councils to leave Statewide – it seeks only to provide an avenue for councils to recover past losses, including those incurred through payment of excessive premiums.

Registration to participate in the JLT Local Council Class Action (NSW) is open to any local council which:

  1. JLT provided insurance broking services to at any time during the period from 1 January 2009 to 3 December 2018 (the Relevant Period); and
  2. at any time during the Relevant Period, obtained Property and/or Public Liability and Professional Indemnity insurance through membership of the “NSW Local Government (Jardine Lloyd Thompson) Mutual Liability Scheme”.

If your council falls within this definition, you may have a claim and can register your interest to participate in the action by joining the class action now.

Additional information regarding the JLT Local Council Class Action (NSW) will be provided following registration. All registrants will also be kept up to date with any key developments regarding the action.

Councils that are from a State or Territory other than NSW are welcome to register their interest to join a class action.

If you inform us of your interest, we will keep you updated regarding any class action proceedings relevant to your State or Territory.

The JLT Local Council Class Action is being run on a no win – no fee basis, backed by Harbour, the litigation funder (“Harbour” or the “Funder”).

Any council that participates in the class action will not be exposed to any up front out of pocket expenses. In the event of a successful outcome, any amounts payable to either Quinn Emanuel or the Funder will be deducted from, and will not exceed, any compensation that council is entitled to receive from its claim.

The amount that each council may be entitled to will be quantified after expert evidence has been obtained in the class action (and will be subject to any settlement sum obtained and/or judgment award received).

The quantum may vary from council to council, however it appears that a number of councils that left JLT managed mutual schemes saved between 30% and 50% on their insurance premiums. Those savings are consistent with the recent announcement by Procurement Australia (which is reportedly Australia’s leading national aggregated buying group, servicing both the public and private sectors and assists local governments to review and market test their risk management and insurance strategies), that since 2015, it has assisted 26 Councils to generate “average annual cost savings of around 31%”.

After council has completed the registration, council will be given an opportunity to confidentially upload onto this website details regarding council’s insurance arrangements during the Relevant Period (including information regarding premiums paid by council).

Council can either complete this information at the time of registration, or by logging back into the website at a later time, post registration.

The information requested will assist Quinn Emanuel to quantify the quantum of Council’s claim, at the appropriate time in the proceeding.

Harbour has agreed to provide security for costs ordered by the Court and, if the class action is unsuccessful, Harbour will pay any adverse costs ordered.

Harbour is one of the longest established, leading global litigation funders with experience from funding more than 100 cases across 14 jurisdictions globally.

Further information can be found at https://www.harbourlitigationfunding.com/

Quinn Emanuel is a global litigation law firm with offices in over nine countries. Quinn Emanuel has successfully recovered over $60 billion for plaintiffs worldwide. Michael Mills and Michelle Fox are leading this action. Both parties are highly rated and have substantial experience in complex litigation, insurance and class actions.

Further information can be found at https://www.quinnemanuel.com/

If you would like further information regarding the JLT Local Council Class Action, please write to us at CouncilsClassAction@quinnemanuel.com or feel free to contact Nicholas Lennings (+61 2 9146 3545), Jessica Bowman: (+61 2 9146 3556) or Ashleigh Whittaker (+61 2 9146 3541).