Appeal against NRMA award

Damages of A$32mn from legal advisers to insurer NRMA have been overturned on appeal.This reverses a New South Wales supreme court order against barrister Dyson Heydon QC and law firms Allen Allen & Hemsley and Abbott Tout related to their alleged failure to warm NRMA of the possible effect of an appeal under consideration in another case on NRMA’s 1994 demutualisation proposals, leading to failure of demutualisation and flotation. Heard by three interstate judges in the appeals court of New South Wales, it was held that the legal advisers were not negligent in advice given, or not given. However, NRMA is currently considering further appeal to the high court of Australia.