Class Action Filed Against Transpower And Omexom Following Massive Northland Power Failure

A class action has been filed against Transpower, the state-owned electricity grid operator, and its lines maintenance contractor, Omexom arising out of a major power outage which occurred in June 2024. The class action seeks to recover losses on behalf of all Northland businesses that were impacted.

The outage was triggered when a Transpower transmission tower near Glorit collapsed during routine maintenance, cutting power to homes and businesses to most of the Northland region. The contractor performing the maintenance had removed all of the nuts from at least two of the tower legs at the same time, which was subsequently acknowledged to be outside of their standard practice.

An independent review by the Electricity Authority concluded the collapse was caused by “entirely avoidable” factors, including Transpower’s inadequate procedures and deficient training, which had already been the subject of a prior internal warning by a senior engineer.

Approximately 180,000 residents and 20,000 businesses were without power – some for several days.

The case is being run by two leading law firms, LeeSalmonLong and Piper Alderman, with backing from litigation funder, Omni Bridgeway.

David Bullock, partner of LeeSalmonLong says Transpower and Omexom’s contribution of $1 million to a regional resilience fund following the outage was unlikely to come close to reflecting the actual losses suffered by Northland businesses.

“The collapse of the tower and the power outage that followed were not the product of some uncontrollable event like a storm - they were the result of a significant failure of infrastructure management that should have been easily foreseen and avoided.”

“It can be difficult for individual business owners to challenge the power and influence of a state-owned enterprise, such as Transpower, and the financial resources of an entity like Omexom – a subsidiary of a multinational company. This lawsuit is about giving those businesses access to justice and an opportunity to group together to fight for compensation,” says Hannah Brown, Partner of Piper Alderman.

The lawsuit is intended to be run on an “opt-out” basis, meaning all businesses that were impacted by the incident will automatically be included once the claim is filed, but businesses will have the opportunity to opt out as part of the Court process if they wish to.

The claim is being funded by Omni Bridgeway meaning that it does not cost businesses anything to be involved in the action – whatever the outcome in court.

“Northland businesses should not have to shoulder the cost of an outage they could not control. Litigation funding will enable them to seek compensation collectively and efficiently, without bearing the costs and risks of litigation,” says Jacob Kerkin, Investment Manager at Omni Bridgeway in New Zealand.

“We don’t think it’s fair that impacted businesses have not been able to receive compensation for their losses, many of which are significant. This class action seeks to make this right,” says Ms Brown.

Business owners can register their details at and get further information and updates about the class action at https://portal.omnibridgeway.com/transpower.

A community meeting will also be held where people can find out more and ask questions directly. Details on this will be shared at a later date.

Background to the incident

On the morning of 20 June 2024, a transmission tower (Tower 130) on an electricity line in the Northland region of New Zealand fell to the ground, resulting in a significant power outage across nearly all of Northland.

The Incident occurred whilst routine maintenance was being performed on Tower 130 - because the nuts securing the tower to its base plate on at least two (of the four) legs were removed. This caused Tower 130 to lift off the base plate and fall. Approximately 180,000 residents and 20,000 businesses were impacted.

Power was completely cut and only partially restored by the evening on 20 June 2024. A number of businesses were not restored to full power for a period of 2-3 days (or longer) – as a result, they were unable to trade and suffered resultant losses.

FAQs

What is the Transpower class action about?

A class action is a court proceeding in which a group with similar interests collectively sues one or more defendants. The court proceeding is brought by a representative plaintiff on behalf of the class.

This class action arises out of a major power outage in Northland which occurred on 20 June 2024. The class action seeks to recover losses for negligent conduct by Transpower, the state-owned electricity grid operator, and its lines maintenance contractor, Omexom, on behalf of Northland businesses that were impacted.

The outage was triggered when a Transpower transmission tower near Glorit collapsed during routine maintenance, cutting power to homes and businesses to most of the Northland region. The contractor performing the maintenance had removed all of the nuts from at least two of the tower legs at the same time, which was subsequently acknowledged to be outside of their standard practice.

An independent review by the Electricity Authority concluded the collapse was caused by “entirely avoidable” factors, including Transpower’s inadequate procedures and deficient training, which had already been the subject of a prior internal warning by a senior engineer.

How can businesses participate in the class action?

It is intended that the class action will be run on an “opt-out” basis, which means that all affected businesses are included in the class action unless they choose to “opt-out”, as part of the Court process. Businesses do not need to enter into a funding agreement to participate in the class action, but we invite them to register your interest now.

If a business registers its interest in the class action, they will receive updates as the class action progresses. Registration is free and without obligation. Simply registering your interest via this website does not bind you to any contract or commitment.

Businesses can register their interest by clicking on the “Register your Interest” button linked below. Alternatively, they can contact the Omni Bridgeway Client Liaison Team by email on transpower@omnibridgeway.com.

What are the group criteria for this class action?

A group member is simply a business in Northland that was impacted by the 20 June 2024 power outage and, as a result, suffered loss (in the nature of financial loss or damage to property).

Why is this class action being filed against Transpower and Omexom?

Without class actions, it can be difficult for individual business owners to challenge the power, influence and financial resources of state-owned enterprises and/or large institutions who have clearly done the wrong thing.

This class action is about giving those businesses access to justice and an opportunity to group together to fight for compensation.

How is the class action funded?

The class action is being funded by litigation funder, Omni Bridgeway on a “no win, no pay” basis in accordance with the terms of a funding agreement or terms imposed by the Court.

If the class action is successfully resolved and compensation is recovered, Omni Bridgeway will be entitled to reimbursement of its costs plus a commission from the recovery only.

There are no ‘out of pocket’ costs for class members to pay. Class members do not have to pay anything if the class action is unsuccessful, as Omni Bridgeway pays any legal costs that might be awarded to either of the defendants in the proceedings.

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