‘Flood blooded’ fight over Qantas class action avoided in travel credit stoush

Two law firms who filed competing class actions against Qantas over its Covid travel credit scheme have agreed to join forces amid a fiery court hearing.

A “full blooded” fight between two law firms over competing class actions against Qantas for its handling of Covid-19 travel credits has been avoided, with key players agreeing to join forces, with plans set for mediation in July.

During an at times fiery hearing before Federal Court Judge Bernard Murphy in Melbourne on Monday, it was decided Echo Law would take charge of the case, taking responsibility for 60 per cent of the workload, while Piper Alderman will complete the remaining 40 per cent.

Both firms filed similar actions against the national carrier this year seeking compensation for customers whose flights were cancelled during the pandemic.

At an earlier hearing, the Federal Court heard Qantas provided travel credits for the cancelled services worth $1.2bn instead of cash refunds. They allegedly held onto that sum for years and realised profits from it, according to Echo Law’s case.

After a short break in the hearing on Monday, the court heard the parties agreed to an “agency model” and noted litigation funders CASL and Omni Bridgeway will split costs evenly.

Echo Law partner Andrew Paull welcomed the development.

“We are pleased this has been resolved. Our focus is now on holding Qantas to account,” he told The Australian.

Qantas Chair Richard Goyder next to CEO Vanessa Hudson during the embattled airline’s latest AGM in Melbourne. Picture: Luis Ascui

It came as Federal Court Judge Bernard Murphy slammed Qantas for failing to answer two direct questions in the case and said he detected a “desire to delay” on their behalf.

Barrister for Qantas Robert Craig asked for some time to consider the new arrangement made in court on Monday, prompting Justice Murphy to question him.

“This all seems like much ado about not very much,” Justice Murphy said.

Ultimately, Mr Craig said he was “absolutely not” attempting to delay proceedings and Justice Murphy agreed there were some complexities Qantas faced in responding to questions from Echo Law and Piper Alderman in the case.

The questions the firms sought clarification on included whether or not the decision to cancel flights during Covid-19 was because of the pandemic, or for other reasons within the airline’s control.

“Flights are cancelled for a variety of reasons including Covid … what we will be doing is a data rich determination of what has occurred in respect of each flight,” Mr Craig said.

Pushed by Justice Murphy, Mr Craig agreed it was “highly likely” some cancellations were within Qantas’s control.

As well, there was an argument about the definition of group members. Mr Craig ultimately agreed refund rights are held by passengers and on behalf of someone else — such as children — if they paid for it.

Justice Murphy also told Echo Law’s barrister, Oren Bigos KC, his client needed to make a “serious attempt” at a system of discovery which is quick and cheap, suggesting $6m was unreasonable.

During a case management hearing on the matter in late November, Qantas’s barrister Ruth Higgins told the court a “full blooded multiplicity fight” was unfolding between the firms.

The class action concerning travel credits is the latest in a series of court cases faced by Qantas.

On Monday, Transport Workers Union national secretary Michael Kaine accused Qantas of walking away from court ordered mediation in their fight for compensation on behalf of 1700 workers who were illegally sacked during the pandemic.

As well, the airline is facing separate legal action from the Australian Competition and Consumer Commission over allegations they sold tickets to 8000 “ghost flights”.

Mediation in the travel credits case must be heard by July 30 next year.