Defined Terms and Documents       

Class Actions (some notes):

Australia’s class actions regime was introduced in 1992, as an efficient mechanism to provide the multiple victims of mass wrongs access to justice with an equality of arms that enabled the actions of large organisations to be properly challenged and resolved in a single case.

IMF Bentham is a litigation funding company, hereinafter a Class Action Litigation Funder, that provides funding to plaintiffs, law firms and corporations for legal disputes in Australia, New Zealand, Hong Kong, Singapore, United States and Canada. Its principal activities are the investigation, management and funding of litigation.

"CLASS ACTION FUNDAMENTALS" PowerPoint presentation that addressed excessive 'Exception Fees' charged by the ANZ bank was presented by Kemp Strange lawyers.

Before a Class Action can be commenced, at least 7 persons must have an individual claim -

(A.)      that arose out of the same, similar or related circumstances and gives rise to at least one substantial common issue of law and fact; and

(B.)      is against the same person or persons. 

 

Litigation Funder -

(I.)        appoints and pays for the lawyers to the plaintiff class action; and

(II.)       gives day to day instructions to the lawyers; and

(III.)      pays the lawyer’s fees and provides an indemnity for adverse costs order and, if necessary, will provide security for costs.

Out of any favourable settlement or judgment, the Litigation Funder has all costs and disbursements paid and receives a fee of between 20% to 40% of the recovery (Exception fees Class Action against the ANZ was 25%).  Fee normally reduces the earlier the litigation is resolved. 

If the plaintiffs are unsuccessful, the Litigation Funder pays adverse costs order and doesn’t receive a fee.

The 'plaintiffs' to a class action need to each execute a 'Funding Agreement' with the Class Action Litigation Funder.

Open classes include every eligible plaintiff meeting the description.

Judgment on or settlement of claims will extinguish all class members’ rights

A Representative Plaintiff -

  • commences the class action on behalf of the group

  • will usually receive an extra payment from the settlement or judgement to compensate for extra effort

Notice must be given to all group members re any offer for Settlement of the claims.  Group members can object to the settlement offer.  Court must approve a settlement.

 

See:

CLASS ACTION SETTLEMENTS IN AUSTRALIA — THE NEED FOR GREATER SCRUTINY - Melbourne University Law Review  -  2014