An Australian Federal Court judge has urged two law firms attempting to run competing class action law suits against Qantas (QF, Sydney Kingsford Smith), to cooperate and consolidate their cases into one to best serve their client's interests.

Sydney-based law firm Piper Alderman plans to file a class action against the airline over its handling of refunds during Covid-19. However, its counsel, Thomas Bagley of Sydney's Selborne Chambers, told the court on October 13 that there was no lead client or funding agreement in place. But he said the firm had spent six months investigating Qantas and should be ready to file suit within weeks. "I anticipate within the next two to three weeks, the pleading will be finalised, and the proceedings will commence," he told the court, adding that he expects substantial "overlap" with the other class action.

Piper's case would compete with one already established by Melbourne-based Echo Law which alleges that Qantas breached its contracts with customers by failing to provide cash refunds for cancelled flights (or failing to offer refunds promptly) and instead providing travel credits; engaged in misleading or deceptive conduct in contravention of the Australian Consumer Law; unlawfully benefited by holding onto their customer's money for years; and engaged in unconscionable conduct in violation of the Australian Consumer Law.

Despite objections from Echo Law's counsel, Oren Bigos KC, Justice Bernard Murphy agreed to extra time for both law firms to discuss how to handle their competing cases. He said competing firms running duplicate fights was rarely in the interests of group members, funders, or lawyers. "Legal firms hate being forced into a consolidation," he said. "But when they seem to get on with a job, it’s efficient and less wasteful."

Ruth Higgins SC, appearing for the Qantas Group, said there remained approximately AUD517 million Australian dollars (USD327 million) in refunds owed to passengers. After a period of sustained adverse publicity, the company recently agreed to refund all out-of-pocket passengers, rather than insisting in many cases that they accepted flight vouchers. The Qantas Group had originally planned to pocket all remaining unclaimed refunds and flight credits at the end of this year.

"Qantas is keen to refund its customers,” Higgins told the court. "Consumers can come to Qantas and get the refund directly. We want our consumers to get their money back.”

Justice Murphy has ordered Piper Alderman file its law suit by October 27, 2023.