Last-ditch action in Storm fight

A LAWYER threatening a class action against the Commonwealth Bank on behalf of more than 300 wiped-out Storm Financial clients has started a last-ditch bid to avoid a court battle.

Stewart Levitt (pictured) said he was upbeat yesterday following a 2 1/2-hour meeting with bank officials on Monday even though the two sides failed to strike a deal or even agree on a date for more talks.

``Nothing was resolved but we made some progress,'' the Sydney-based principal of Levitt Robinson Solicitors said.

``I was impressed by the general tenor of the meeting and the goodwill generated. By the same token, I am not optimistic or pessimistic that an agreement will be reached. I want the matter resolved quickly and they are not making a commitment to do that.''

He said if a settlement could not be reached within a few weeks, he would file a statement of claim in Federal Court alleging the bank breached its contractual obligations.

A bank spokesman declined to comment yesterday but it is understood talks have been held with lawyers representing Storm clients ahead of potential legal challenges.

The bank, which has acknowledged flawed lending practices, was the principal margin lender for about 3000 Storm investors who lost an estimated $3 billion when markets collapsed in late 2008.

It has entered into a negotiated settlement with more than 600 other Storm victims in a deal overseen by law firm Slater & Gordon and an independent legal panel.

Mr Levitt has attacked this ``hardship'' formula for not fully addressing legal entitlements and liability issues stemming from the bank's ties to Storm, which was liquidated by court order last year.

He said that another three Sydney clients were on the verge of filing cases regardless of what happened to the class action.