Australian Federal Court Urges Consolidation of Qantas Refund Lawsuits

Two Australian law firms, Piper Alderman and Echo Law, are pursuing competing class-action lawsuits against Qantas (QF, Sydney Kingsford Smith) over the airline’s handling of refunds during the Covid-19 pandemic. The Federal Court has urged both firms to cooperate and consolidate their cases for the benefit of their clients.

Piper Alderman, based in Sydney, plans to file a class action against Qantas regarding its refund practices. While the firm has spent six months investigating the matter, there is currently no lead client or funding agreement in place. However, counsel Thomas Bagley anticipates filing the case within the next two to three weeks.

This action would rival the existing class action filed by Melbourne-based Echo Law, which alleges that Qantas breached contracts with customers by not providing cash refunds for canceled flights promptly, offering travel credits instead. The lawsuit also claims Qantas engaged in misleading or deceptive conduct and benefited by withholding customer funds. Echo Law further accuses the airline of unconscionable conduct.

Justice Bernard Murphy has granted additional time for both law firms to discuss the handling of their competing cases. He emphasized that duplicate lawsuits are rarely in the best interests of group members, funders, or lawyers. Despite objections, the court has encouraged cooperation for greater efficiency.

Ruth Higgins, representing the Qantas Group, revealed that approximately AUD517 million (USD327 million) in refunds is still owed to passengers. Qantas recently decided to refund all out-of-pocket passengers, abandoning the initial plan to keep unclaimed refunds and flight credits at the end of the year.

Justice Murphy has set a deadline of October 27, 2023, for Piper Alderman to file its lawsuit.