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SOURCES close to the Class Action that a group of former Holden dealers are pursuing against General Motors Holden Australia NSC are saying that Holden sought to have it suspended because it did not believe that the lead plaintiff to the Class Action could afford Holden’s legal costs if the dealers lost the case.

Sources close to the action have also said that Holden is seeking to stop the Class Action on the basis that the dealers do not have a common question to be determined in the Class Action.

This would have the effect of any trial having to consider each of the dealer parties’ cases individually rather than basing the case on the dealer who is the lead plaintiff.

Such a move would have the effect of prolonging the term of the hearing substantially and therefore seriously multiplying the legal costs associated with a trial.

Holden is also applying to the Court to strike out the part of the claim that alleges that GM decided to retire the Holden brand in 2017. All the Holden dealers entered into their dealer agreements in 2017. Sources close to the issue say that one reason Holden may be doing this is to avoid any scrutiny of the timing of GM’s decision to retire the Holden brand and what it knew about that.

The Class Action by 11 Holden dealers is claiming that Holden breached their dealer agreements by not making any vehicles available to sell to them after the decision was made to retire the Holden brand.

The Class Action was commenced after months of negotiations with Holden failed to see any change in the original offer of compensation made by Holden. Failing a settlement before the case reaches court, the Class Action trial would also consider the fair measure of compensation for the dealers.

The Class Action was filed before Christmas but Holden has yet to file a defense. Sources close to the action say Holden’s focus might be to stall the Class Action through procedural Court disputes.

GoAutoNews Premium has been told that the attempt to have the case suspended on the issue of the lead plaintiff’s ability to cover Holden’s costs was opposed and Holden has withdrawn its assertion. Meanwhile the move to de-class the action is also being opposed.

In a Class Action it is common for the trial to revolve around one of the parties – the lead plaintiff. The action for all parties stands or falls on the common issues surrounding the lead plaintiff.

But sources close to the action have said that Holden is claiming there are no common issues between each of the dealer parties to the case and it is saying that a Class Action is not the correct vehicle to hear the claims. Holden wants every dealer to run their case individually.

This would mean that the proceedings would then be separate although still heard concurrently by the one judge. The proceeding does not go away, it just continues in another form and adds complexity and costs because the court would have to then deal with evidence of each of the dealer’s individual positions.

By John Mellor

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