👋 G’day
Welcome back to another day of insights
Today’s brief:
HSF joins Albo in China
AI case ends up in judgment
Union could sway Santos bid
Here’s your latest 👇
PRACTICE POINTS
Class actions surge
Class action filings surged in H1 2025, according to Allens. 36 cases were lodged by June, putting this year on track for a record. BUT 19 of those relate to junior doctor underpayment claims filed on the same day, making the spike look bigger than it really is. Employee and consumer claims lead the way - staff-related cases now make up 56% of filings, up from 15% in past years. Shareholder claims are also back, despite no wins on liability or remedy from any recent cases. Four have already been filed, and a fifth is imminent, suggesting promoters are undeterred by recent losses: Allens
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In the latest chapter of the Capic v Ford gearbox class action, the Federal Court reaffirmed a 30% reduction in value for a defective Ford vehicle, following the High Court’s guidance on how ACL damages should be assessed. Under Williams v Toyota and Capic v Ford [2024], courts must assume when assessing damages under section 272(1)(a) of the ACL, a reasonable consumer knows everything about "state and condition of the goods", including repair of any defects at the time of supply. The Federal Court also awarded consequential losses like stamp duty, GST and financing costs tied to the inflated purchase price.
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Mercedes-Benz dealers have lost their $650m unconscionable conduct claim over the shift to a fixed-price agency model. The Full Federal Court upheld Justice Beach’s ruling that while Mercedes-Benz played “hardball”, it didn’t cross an unconscionable line. The dealers argued the switch left them worse off and breached “community standards”, but the Court wasn’t swayed, reaffirming that statutory unconscionability must be grounded in the ACL’s text, not vague moral benchmarks. The case confirms that acting in your commercial interest, even aggressively, doesn’t make you unconscionable: Lawyerly
WORD ON THE STREET
Firms chase energy transition

Ashurst’s Aylin Cunsolo, who just joined after 17 years at Baker McKenzie, says the energy transition is a “generational challenge”—driving surging demand for legal advice. Big Six firms from KWM to Minters are reporting growth off the back of renewables, EVs, data centres and decarbonisation projects. As ageing fossil assets retire, firms are racing to staff up in energy, infra and ESG: AFR
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Here’s some Friday good news. Thomson Geer’s Hannah Fas says AI isn’t killing legal jobs…it’s accelerating them. Used right, AI tools help lawyers ditch grunt work and focus on value-add. But warns: “If you’re not a trained carpenter, you can’t just walk into a shed and pick up a tool and create a chair.” Meanwhile, senior associate ranks are up 6%, proving the humans are still very much in demand: AFR
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A former NT Supreme Court judge is under investigation after a former associate alleged sexual harassment, including unwanted photos, inappropriate comments, and a suggestion they “share a bed to save money”. The NT government tried to have the case tossed due to timing, but the commission refused, stressing judges must be held to “the highest degree of integrity”: Lawyers Weekly
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Remember CJ Gaegler’s AI predictions? Well, it’s now a reality. Gageler warned AI could slip fake cases into judgment databases, corrupting future rulings. And that’s exactly what happened in Shahid v Essam. In a US family law case, the husband cited non-existent AI-generated cases, which the trial judge relied on. On appeal, the court found 11 more hallucinated citations in his brief and fined his lawyer US$2,500: Capital Brief
TALKING POINTS
Trump’s peace prize?

Get this - Israel and Pakistan have both nominated Trump for the 2026 Nobel Peace Prize, crediting his role in cooling tensions with India and backing Israel during its war with Iran. Trump’s chased the prize since term one, but recently said he “won’t get a Nobel Peace Prize… no matter what.” The committee has previously declined to award the prize during years of global conflict, like the World Wars: The Daily Aus
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Albo is off to China with a who’s who of business — BHP, Rio, Fortescue, Macquarie, ANZ, SunRice, HSF — but no tech leaders. Despite China’s push to fold AI into the trade deal, Canberra’s wary. Security concerns and Trump’s tariff war have Australia playing it safe, keeping key tech ties at arm’s length for now: Capital Brief
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In a 501-page judgement, Europe’s top human rights court has ruled Russia is responsible for downing commercial airliner MH17, backing claims it armed and aided rebels who fired the missile. All 298 on board died, including 38 Australians. The Court slammed Russia for failing to identify military targets, a failure to participate in the proceedings and for aggravating the suffering of victims' families by denying involvement. Compensation is unlikely, but Ukraine called the ruling “historic”: The Guardian
THE TREASURY

ASX as at market close. Commodities and crypto in USD.
DEAL ROOM
Union could sway Santos deal
Santos: The Australian Workers’ Union may be the decision maker. AWU’s support is shaping up as a make-or-break factor in ADNOC’s near-$30bn bid at Santos, with Macquarie warning Chalmers faces “career risk” if he backs the deal without union backing. FIRB approval may hinge on jobs and domestic gas promises, while keeping CEO Kevin Gallagher could spook Canberra given long-running tensions with Labor: The Australian
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Brookfield: wants $3bn+ for La Trobe Financial, but bidders like KKR and Warburg Pincus aren’t convinced. Brookfield’s pitching it as a high-multiple funds manager, not a non-bank lender like Pepper or Latitude. Valuation hinges on that distinction—buyers see 8–9x earnings if it’s the latter, but up to 22x if they buy the fundie story: The Australian
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Bell Potter: has thrown its weight behind the Platinum–L1 merger, calling it the best deal going after Regal walked. Combined, they’re eyeing $30m–$35m in cost synergies. Critics say L1’s fees are overpriced, but Bell’s bumped its FY27 EPS forecast up 67%: The Australian
SECTOR SPECIFIC
Hotels boom and bust

🚜 DIGGERS
WA Premier Roger Cook says LNG deserves more love, calling it a crucial bridge to decarbonisation for Asia—even if it’s not “bumper sticker” material. As UNESCO mulls World Heritage status for Murujuga, activists and Traditional Owners are clashing over emissions from Woodside's Burrup ops. But Cook argues that decarbonising WA matters less than helping Asia ditch coal: AFR
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Liontown says it’ll be one of the last lithium mines standing, even as spodumene prices hover near US$600/t. Still well below breakeven for most. Revenue’s down 30%, and rivals like Rio and MinRes are shuttering mines. Execs say it’s not just hard rock under pressure, it’s the entire industry. Mrs Rinehart holds 19.9%: The Australian
🏦 FIN
CBA and the big four are making huge bets on rate cuts to hedge falling margins, warping market pricing. Traders say the odds of an RBA cut were overstated by up to 12% thanks to banks’ positioning. Hedge funds cashed in by taking the other side. The result? A ‘shock’ hold that wasn’t quite so shocking to insiders: AFR
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The UK’s FCA has fined Monzo £21m for letting financial crime slip through the cracks, including onboarding customers with addresses like Buckingham Palace. The digital bank signed up 34k high-risk customers despite being banned from doing so. Monzo got a 30% discount on the fine for agreeing to resolve issues: Capital Brief
🏠 RETAIL & REAL ESTATE
Hotels are ready to boom. More than 55 new international routes are tipped to add 1.9 million room bookings annually by end-2026, says CBRE. Sydney and Melbourne lead the rebound, but Brisbane, Perth and Cairns stand to gain most, thanks to tight hotel supply. Expect 3–4% occupancy lifts, fuelled by growing arrivals from China, India, Southeast Asia and North America: The Australian
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It’s not all clear skies after its float. Virgin Australia cabin crew say a Perth hotel is so bad it’s jeopardising rest and safety, with one flight attendant given a room without a bed. Pilots and flight attendants are taking the fight to the Fair Work Commission, citing noise, mould, and dodgy locks. Virgin says the hotel is fine. The crew's response? Try sleeping there first: The Australian
📱 TECH & STARTUPS
ByteDance says no TikTok deal (yet) with Oracle to offload its US arm, despite the clock ticking on the Sept 17 divestment deadline. Under Trump’s ban threat, TikTok must sell or shut down. ByteDance is tipped to keep a minority stake, but both Washington and Beijing must approve. A new US-only app version is reportedly in the works: Investing
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Founders are fuming as the NSW government fast-tracks the closure of the Sydney Startup Hub, with little detail on what’s next. While officials promise a “turbocharged” Tech Central, desk pricing, access, and transition plans remain unclear. Critics say the move risks killing momentum in a $55bn sector, and accuse the government of “gaslighting” the ecosystem: SmartCompany
P.S.

Till next time,
-Team PB