ALL CLEAR FOR HENRY KAYE CLASS ACTION
10th August 2005
ALL CLEAR FOR HENRY KAYE CLASS ACTION
The real fight begins now.
by Andrew Taylor,
media liaison, Slater & Gordon, Lawyers.
The finance company being sued by former students of property entrepreneur Henry Kaye has lost its Supreme Court bid to block their class action.
Australian Finance Direct Limited, a subsidiary of the Hanover Group, had sought to end the class action and force thousands of investors to take individual action to end their contracts with the company which financed their hefty tuition fees.
Rob Lees, a partner with law firm Slater & Gordon, which is representing more than 200 people, says yesterday's decision by Justice Elizabeth Hollingworth in the Supreme Court of Victoria is a green light for the class action to go ahead.
"Victims of Henry Kaye will now have their day in court," Mr Lees said.
"AFD - recognising that investors have strength in numbers - wanted to divide and conquer, forcing investors into the impossible position of funding and running hundreds of separate legal actions.
"But AFD has today failed in its bid to stop the class action on a technicality and we will now push ahead with trying to extract our clients from these rapacious financial contracts.
"Now that the sideshow is over, the real fight begins."
Slater & Gordon filed proceedings in the Supreme Court of Victoria in June on behalf of lead plaintiff Daniel Hall of Sydney. The action has the support of property expert and consumer advocate Neil Jenman, a long-term critic of property spruikers.
Mr Hall is among the many students of Henry Kaye's National Investment Institute who were directed to Australian Finance Direct Limited to borrow tuition fees of around $15,000.
"Claimants in the class action relied on misrepresentations by the National Investment Institute that their course was ASIC-approved, and that they could get a refund on their fees at any time if they were not satisfied with the course," Mr Lees said.
"With National Investment Institute now in liquidation, Australian Finance Direct is continuing to pursue former students for the fees they borrowed, despite many students being dissatisfied with the course and seeking refunds, while some received no tuition at all.
"In addition to the class action seeking to terminate these financial contracts, Slater & Gordon is representing former students who are being sued by Australian Finance Direct."
There are potentially several thousand people eligible to be part of the class action which means the total amount at stake is in the region of $30 million.
***************
This article was taken from the News page of the Jenman website.
<< Back to Latest News
Articles
INSTANT REACTIONTo put a property on the market takes effort. There is the effort in selecting the agent and marketing
strategy, the effort to prepare and present the property and then the effort to keep the presentation A1 throughout the campaign.
CONDITIONINGThe tricks used to drive your price down.
THE TWO RESERVE PRICESAt an auction, the property cannot be sold until the bidding reaches the sellers reserve price. Many sellers that sign up for an auction are comforted by the fact that the reserve price will protect them against underselling.
