Warning to flood victims: Be cautious of FABAH's latest blabber




Goodna RSL Services Club  - January 2011



FABAH (Flood Affected Businesses and Households) stands accused of either gross negligence or deliberate stupidity with its latest email newsletter. 

Today's missive from FABAH states:

Legal Actions

These appear to still be delayed by Seqwater withholding requested information, and any legal actions will likely wait for consideration of the U.S. experts' independent review of Seqwater's March 2011 Flood Event Report.  The U.S. experts are due to present their final report by 24 September 2012. 

I still recommend folk do not sign for any legal action until it is clear which, if any, is preferable. 

It still appears to me; that the collective action of the insurance companies, to claim reimbursement from the State of Queensland for its negligence, which caused huge financial loss for the insurance companies, will result in a precedent being established that will enable all to claim without the need to sign up to any class action.

FABAH has the bull by the horns on this issue and has failed to grasp the essence of the proposed legal actions. 

If the insurance companies mount their own legal action against the Queensland Government for negligence over the operation of the Wivenhoe Dam in January 2011 - or if they join a wider class action - all they can possibly receive back is what they paid to their flood policy holders. 

Suncorp Insurance is the best example of this. On the other hand, RACQ Insurance for example - which did not cover riverine flooding - did not have to pay out.  Therefore, they would have nothing to recover from any legal action. 

Property owners without riverine flood cover would then have 2 choices: Make a legal claim in their own right - which would be financially prohibitive - or join a class action. 

Relying on Campbell Newman to make ex gratia payments to claimants would be as likely as his re-hiring the 14,000 state public servants he sacked. 

Home and business owners who follow FABAH's latest advice could be left high and dry with the sooner-than-later closure of individual claims under a class action. 

Once the class is defined, the only recourse for a potential claimant would be an individual legal action against the state government which few could afford.

Alternatively they could wait for "Moneybags" Newman to drive round the streets of Ipswich and Brisbane handing out free cash like some latter day loaves and fishes missionary.

FABAH seems to believe the Campbell Newman cash give-away is a real possibility. 

Then again, pigs might fly over Brisbane one of these days too!

21.9.12