Class Actions

A class action is when a group of people have a similar claim against an organisation – for example, against a powerful defendant like a large corporate, product manufacturer or government – and take collective legal action against them.

Class actions provide accountability and access to justice for groups of people who may otherwise not be able to undertake legal action.

Class actions help level the playing field

Some class actions are funded by the claimant group; others are funded by litigation funding, which involves a third-party agreeing to fund the claim in return for a fee if the claim is successful. We have dealt with both.

Without class actions, companies can cause widespread harms or do wrongs that affect people on a large scale (like overcharging bank fees like a data breach or a defective product). These issues can go unremedied because no single person has the incentive or resources to take on a well-resourced entity, and the corporate misbehavior continues and impacts more people.

Examples of class action claims

There are many types of class action claims that can be brought on behalf of a group of class members who have all been harmed in a similar way. Common examples include:

·        Consumer protection

·        Data breach claims

·        Defective products

·        Mass tort claims

·        Employment

·        Environmental

·        Medical devices/pharmaceuticals

·        Shareholder and investor claims

Funding may be available to cover your costs

Litigation funders, as the name suggests, are third parties who fund class action claims, so you won’t need to. Removing this financial barrier for individuals reduces imbalances and ensures settlements are more likely to reflect the merits of claims than the economic disparities between the parties.

Dalzell Wollerman works with several trusted and highly regarded litigation funders locally and internationally. See our class action FAQs below for more information on litigation funding.

Are you considering a class action lawsuit?

Dalzell Wollerman is one of only a handful of law firms in New Zealand specialised in bringing class actions to court. If you’re wondering how to start a class action in New Zealand or have heard of one that you may be eligible to join, please get in touch to discuss.

Dalzell Wollerman class action examples

Harditex

In 2016, the High Court gave permission for a leaky building class action to proceed against cladding manufacturer James Hardie. The action claims James Hardie was negligent and breached the Fair Trading Act in its design, manufacture and supply of the Harditex cladding system.

 

The first Harditex claim was brought by Tracey Cridge and Mark Unwin, who claim their Wellington home suffered widespread internal water damage - estimated at the time to cost more than $300,000 to fix. Subsequently, a group of more than 160 homeowners opted to join the claim, which was heard in August 2020. The High Court ruled against the plaintiffs but the group appealed to the Court of Appeal. The appeal is pending. Dalzell Wollerman acts for the plaintiffs.

Plane Sense

Plane Sense Wellington Inc, a community group, has engaged Dalzell Wollerman to initiate a High Court judicial review to declare the DMAPS flight path change invalid and to have it set aside. The group believes it has a strong case against Airways, Wellington International Airport Ltd, and the Director of Civil Aviation. The change, which was implemented on December 1, 2022, increased aircraft movements over residential areas without community consultation, raising concerns about public health and safety.

 

Since March 2023, Plane Sense has attempted to collaborate with the authorities to revert to the original flight path, but without success. The group highlights that the increased noise has worsened physical and mental health conditions for many residents, including children and the elderly. Despite obtaining documents showing a rushed approval process and lack of community consultation, the authorities have not committed to any changes. Consequently, residents voted overwhelmingly in April 2024 to pursue legal action. Co-Founder Roxy Steel criticized the unprofessional handling of the flight path change and the lack of accountability from the involved organizations, while Co-Founder Louisa Picker emphasized the significant negative impact on residents' health and quality of life.

Common questions about class actions (FAQs)

  • A Class Action is a court proceeding where one party brings a claim on behalf of, or for the benefit of, a greater group. These individuals have the same interest in suing one or more defendants.

     

    In New Zealand, the ‘opt-out’ approach has recently been approved by the Court of Appeal. This makes it easy for impacted individuals to be involved in the proceedings as they will only be excluded if they explicitly ‘opt-out'.

  • There are many different types of class action cases as they are a helpful tool for representing large numbers of people who have been affected by similar circumstances.

    Our law service for class actions extends to manufacturing, Government, environmental or natural disaster claims (such as biosecurity breach, land contamination, remediation arising from mining, quarrying or forestry operations and/or failure of a government or regulatory body to properly regulate), banks and financial services, employment, building and construction sector, insolvency-related claims, and privacy/data breach claims.

  • To establish whether you have a case, we would set up a meeting in which we listen to your situation and seek to understand what has occurred and how we might be able to help. It is good to come prepared to this meeting with all the information about the case

  • Not always. Where appropriate, we’ll guide you through negotiated settlements of disputes, often using mediation to engage face-to-face in a private and controlled environment. Successful resolution at mediation without the need to go to court is always our preference. However, we have extensive litigation skills and resources required to take matters to court when necessary.

  • It can sometimes be expensive and time-consuming to bring any case before the courts. Litigation funding involves a funder with no interest in the litigation covering some or all of the costs of a proceeding, including indemnifying the plaintiffs for adverse costs if the class action is unsuccesful. In exchange, they receive a share of any sum recovered as commission.

    Litigation funding greatly minimises the cost and risks involved in pursuing justice. The reduction of these barriers allows representative proceedings to be litigated until their conclusion when they may otherwise be unable to.

    Our team will discuss with you your options and whether litigation funding might work for you.

  • Class actions can be an appealing option for potential claimants because of their efficiency, as multiple similar claims can be heard concurrently instead of one after the other. This groups together the legal issues of each individual class member, and can streamline the process for both the parties and the Courts.

    However, class actions have their own complexities, are multi-stage, and depend much on the particular facts of each case. Class actions tend to take several years to fully resolve, and may be extended if the decision is appealed.

    As an example, Strathboss, an early New Zealand class action by around 210 kiwifruit growers against the Crown, was first brought in late 2014. It was heard in the High Court in mid-2017, and the decision of the Court was released just under a year later in 2018. The Crown appealed the decision to the Court of Appeal, which released its judgment in 2020, and was then appealed again. The parties settled in 2021 out of court, so the case was not heard in the Supreme Court.