ABS defect class action against Hyundai and Kia

Case update

Multiplicity Proceedings

Maurice Blackburn commenced proceedings on behalf of group members in the Supreme Court of Victoria against Hyundai and Kia in relation to alleged defects in the ABS of a number of their vehicles which have been subject to recall notices (Johnston and Moroney Proceedings).

Separate and broadly overlapping class actions against Hyundai and Kia were subsequently commenced by another law firm and lead plaintiffs (Edwards and Sims Proceedings). Due to the overlap between the proceedings, the Court sought to resolve the multiplicity of proceedings by way of a carriage contest.

The carriage contest was heard on 30 June 2025 by the Honourable Justice M Osborne. On 18 July 2025, Justice Osborne handed down judgment and decided that the Maurice Blackburn-led Johnston and Moroney Proceedings should continue as an open class proceeding, and that the competing Edwards and Sims Proceedings should be permanently stayed.  

In summary, Justice Osborne denied two alternative carriage proposals that the Edwards and Sims Plaintiffs had advanced and therefore held that they did not advance any valid competing bid for carriage. For completeness, Justice Osborne also found that even if he had accepted either of their proposals, carriage would have still been granted to the Johnston and Moroney Plaintiffs because Maurice Blackburn was found to have the greater expertise and experience in class actions relative to the legal practitioners representing the Edwards and Sims Plaintiffs.

The full reasons for the carriage decision can be accessed here.

The appeal period for the carriage decision has expired, and the Edwards and Sims Plaintiffs have not filed an appeal. This means that the carriage contest has concluded, and we are now able to continue advancing the claims of group members and the Johnston and Moroney Plaintiffs.

Group Costs Order

In determining the carriage contest, Justice Osborne also made orders dated 8 August 2025 approving a group costs order (GCO). A GCO is an order of the Court in which the legal costs payable to the law practice representing the lead plaintiff and the group members are calculated as a percentage of the amount of any award or settlement.

In the event of a successful outcome, the legal costs payable to Maurice Blackburn will be calculated as a percentage of the amount of any award or settlement that may be recovered in the proceedings, in accordance with the following table:

The effect of the GCO is that the legal costs payable by group members to Maurice Blackburn cannot exceed 24.75% of any resolution sum, subject to any further orders by the Court. There may be also separate but smaller deductions such as costs arising from administering and distributing any settlement sum but any such costs will also have to be approved by the Court.

Any amounts payable by group members must be approved by the Court as fair and reasonable and will be paid from any resolution sum before being distributed to group members. Those deductions will never exceed a group member’s recovery and will be shared by all group members. In the event of an unsuccessful outcome, group members will not be liable to pay Maurice Blackburn’s legal costs.