Lawyers attack public liability insurance restrictions

28 February 2006

Source:  CCH

New laws which restrict action for damages under the Trade Practices Act 1974 compromise consumer safety and make it harder to pursue companies like James Hardie, according to a legal lobby group.

The Australian Lawyers Association claims the laws will allow businesses to knowingly sell or use dangerous products and escape legal action for injuries or death which result from them.

The Trade Practices Amendment (Personal Injuries and Death) Bill 2004 amends the TPA to prevent individuals bringing actions for damages for personal injury and death under the Act's misleading and deceptive conduct and other unfair practices provisions.

It also recommends removal of ACCC's power to bring representative actions for damages for personal injury and death, ensuring any such actions in the future to be brought under common law, rather than civil law.

The bill was passed last night after the federal government defeated Labor's proposed amendments.

The Government claims the reforms will limit public liability claims costs, reducing pressure on insurance premiums and assist in delivering affordable public liability insurance.

But the ALA said the legislation was the last nail in the coffin for consumer safety.

"Previous changes to the TPA limited the ability to sue the negligent party, with the only exception being where those responsible had in engaged in misleading or deceptive conduct," ALA president Richard Faulks said.  "Last night, parliament has removed even this safeguard for Australian consumers, except for tobacco products."

Mr Faulks said the amendment would make it harder to pursue companies like James Hardie, which he claimed had tried to rely on state reforms which limited damages for asbestos victims.

"Lawyers representing asbestos victims who have amended their actions to try and bring actions under the misleading and deceptive provisions of the TPA to gain fair compensation for asbestos victims will no longer be able to do so", he said.