The 2013 Blue Mountains Fire Class Action: Do insurers have the right to opt out of class actions on an insured’s behalf?
On 19 August 2015 Garling J of the Supreme Court of New South Wales delivered a judgment in Johnston v Endeavour Energy  NSWSC 1117. He found that opt out notices filed by the insurers on behalf of over 550 of their insureds were invalid. In reaching this decision, the Court considered two key issues: the principles of subrogation and the relevant wordings in the insurance policies. This article will summarise the key findings on these two issues, and consider the implications the case will have on insurance policy drafting.
Significant cases, legislation or articles referred to
Johnston v Endeavour Energy  NSWSC 1117Download PDF of Article