CBL Collapse Ignites Firestorm of Litigation

Abstract

The collapse of CBL Corporation Limited (in liquidation) (CBL Corporation) and related companies, including CBL Insurance Limited (in liquidation) (CBL Insurance), heralds in a new dawn for complex litigation in New Zealand. Never before has the same subject-matter birthed as many class actions and regulatory actions within New Zealand's court system. The flow-on effect is that our judiciary will soon encounter novel and complex issues relating to issue estoppel, consolidation and litigation funding. This article addresses the current proceedings on foot and signals important and unprecedented issues that will arise in those proceedings in the near future including consolidation of competing shareholder class actions and the impact of regulatory actions on civil class actions.