Kirks Natural, LLC, which distributes soaps, hand washes and creams under the South of France brand in the U.S., agreed to pay $650,000 to settle allegations that the company misrepresented its products, which are actually produced in the U.S. (not in Southern France). As discussed in Chapter 5, court scrutiny of costs is an important part of settlement approval and, in relation to litigation funding costs, is a rapidly developing one. The number is now falling. [240], 4.243 Roundtable discussions with class members indicated that information sent by the scheme administrator about settlement distribution is often lengthy and complex. [158] The appointment of a contradictor, and a greater role for parties and class members were raised during consultations and in submissions as means of assisting the Court in this context. The Courts ability to control proceedings through directions hearings and taking a more active role in the management of the case will help to ensure that the costs incurred by the parties are less than the cost which would be incurred if the proceedings were all conducted as individual proceedings.[15]. Consumers in 11 states who purchased a qualifying product after a date ranging from 2006 to 2010, depending on state, and before July 1, 2017, can receive a cash payment. Although flexibility should be retained, there is a need for guidance and parameters that avoid, where possible, procedural and legal uncertainties that take time to resolve and add to the cost burdens borne by both defendants and plaintiffs. It recommends that the representative plaintiffs lawyers provide this and other key information to them, and the Court, at the start of proceedings (Recommendation 23). They include: the experience of the lawyers bringing the class actions, the costs the lawyers expect to charge for the work performed, the funding terms in each of the proceedings, including funding terms and conditions and percentages, the resources made available by each law firm, and their accessibility to clients, the state of preparation of the proceedings (relevant but not determinative if both proceedings will be ready for trial at the same time), the number of class members signed up to each of the proceedings, whether each of the proceedings would proceed without a common fund order, and the terms of any proposed common fund order that might be sought, the position adopted by each funder on the question of security for costs and generally their resources to meet any adverse costs order.[83]. Submission 9 (Professor Simone Degeling, Associate Professor Michael Legg, Dr James Metzger). [113], 4.116 The expertise that a third-party scheme administrator would need to bring would depend upon the circumstances of the case. 4.95 The Judicial Panel on Multidistrict Litigation (MDL Panel), which transfers cases between federal districts in the United States, was put forward as a possible model upon which to base a cross-vesting panel in Australia. The issue has also been raised in commentary. Both were brought on behalf of some of the victims of the 2009 Black Saturday bushfires. The Court has sufficient powers to manage class actions efficiently and prevent unmeritorious or otherwise unsuitable class actions from progressing. Opt-out notices may now be required to address, inter alia, registration requirements, applications for common fund orders or other orders relating to the payment of a funding fee, security for costs orders, or choice of class action where competing proceedings arise: Submission 35 (Professor Vince Morabito). the Federal Court have an express power to make a costs order against a litigation funder, including an order that the funder pay the costs of any independent referee (recommendations 15 and 16). A class action is a legal proceeding in which one or more plaintiffs bring a lawsuit on behalf of a larger group, known as the class. [191] They include how the settlement complies with the criteria for settlement approval, why the proceedings have settled on particular terms, and the effect of the terms on group members. WebWith the introduction of the Victorian Bill and the High Court to rule in the Westpac and BMW class action proceedings on the validity of common fund orders on 4 December 2019, announcing federal class action reform is likely to become a priority for the Federal Government in the coming months. Over the past 10 to 15 years, class actions have become an increasingly entrenched and accepted aspect of commercial life for organisations conducting business in Australia. Part 4A of the Supreme Court Act 1986 (Vic) contains little specific guidance as to what an adequate representative plaintiff looks like. a recommendation that the Federal Government amend the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth) so that exclusive jurisdiction is conferred on the Federal Court for all class actions under those statutes including shareholder claims (recommendation 30). Submissions 12 (Allens), 13 (Maurice Blackburn Lawyers), 21 (Law Council of Australia), 25 (IMF Bentham Ltd), 28 (Slater and Gordon Lawyers), 30 (Supreme Court of Victoria), 35 (Professor Vince Morabito). Level 3 See, eg, Justice Bernard Murphy and Vince Morabito, The First 25 Years: Has the Class Action Regime Hit the Mark on Access to Justice? in Damian Grave and Helen Mould (eds), 25 Years of Class Actions In Australia: 19922017 (Ross Parsons Centre of Commercial, Corporate and Taxation Law, 2017) 13, 412. Part 4A of the Supreme Court Act mandates Court supervision at various points of proceedings, one of which is settlement. a complete indemnity in favour of the representative plaintiff against an adverse costs order (recommendations 8 and 9); and. The need for guidance has long been recognised. 4.36 As reiterated throughout the Commissions consultations, a nationally consistent approach to class actions is desirable. The volume of information was found to be excessive and difficult to understand, making it overwhelming.[239]. a recommendation that the Federal Government review the feasibility of applying the AFSL and MIS regime to lawyers operating on a contingency fee arrangement (recommendation 21) which would extend to class actions brought under state regimes. 4.52 Increasing the time and financial barriers faced by the class when commencing a class action not only makes justice less accessible and more costly,[48] but also goes against the trend of recent judicial reform to reduce pre-trial complexity.[49]. 4.124 In a class action, the law firm acting for the representative plaintiff will generally run proceedings on behalf of the entire class. 4.109 While the Commission recognises the expertise of the Victorian Legal Services Commissioner in handling complaints regarding lawyers, introducing another avenue for complaint may simply prolong settlement distribution for class members. [241], 4.244 Although submissions recognised the importance of keeping class members informed during settlement distribution, they did not generally recommend that guidelines be drafted for lawyers on how and what they communicate with class members during this time. An example is the Federal Courts approval of common fund orders, which allow litigation funders to obtain a court-approved funding fee from every registered class member, regardless of contractual arrangement. Settlement distribution. Wells Fargo will pay $3.75 million to settle a class action lawsuit alleging that the bank facilitated a Ponzi scheme that cost investors in Equitybuild, a buy-and-flip investment property business, millions. [111] IMF Bentham suggested that the courts should consider appointing an administrator rather than the lawyers who conducted the action when: the settlement distribution would be likely to be conducted at less cost and more quickly, it is unnecessary to have lawyers, at lawyers rates, undertake an administrative function, the lawyers are likely to be less efficient than an administrator with more relevant expertise, all that is required is the application of the court-approved scheme and there is little merit in having lawyers with the factual and legal knowledge implement the scheme, the lawyers are likely to largely outsource the calculation or determination of merits in any event, the lawyers do not have any particular expertise in the application of formulas or claim assessment used in the settlement distribution scheme. 4.143 However, as recognised in many submissions, the Court has powers under part 4A of the Supreme Court Act which allow it to address issues relating to the adequacy of the representative plaintiff, where required.
These factors could provide a framework for any guidance included in the Supreme Court Practice Note. Submissions 8 (Dr Warren Mundy), 13 (Maurice Blackburn Lawyers), 21 (Law Council of Australia), 25 (IMF Bentham Ltd), 28 (Slater and Gordon Lawyers), 33 (Victorian Bar). His original raps composed about the popular manga series Naruto have helped him amass more than 140 million views. It would be unlikely to provide any real change to practice, and may risk a one size fits all approach being adopted, which the Federal Court has cautioned against.[81]. While the Commission considers it desirable that issues relevant to the conduct of class actions be addressed early in proceedings, this is not always possible. [170], 4.172 An example is the issue of costs. [167], 4.170 The Supreme Court stated that the criteria for settlement approval do not require a formulaic recitation in legislation. the case. 4.201 The Commission considers that guidance for the appointment of a contradictor, whether for settlement approval as a whole or only for settlement distribution, should be included in the Supreme Court Practice Note, and makes a recommendation to this effect (Recommendation 16). Singular Tradition of Client Service and Engagement with the Client, Mutual Commitment of, and Seamless Collaboration by, a True Partnership, Formidable Legal Talent Across Specialties and Jurisdictions, Shared Professional Values Focused on Addressing Client Needs. Class action litigation in Australia continues to be active and highly complex. 4.140 Litigation funders involved in class actions are likely to have little, if any, direct engagement with class members. Communication during settlement distribution, 4.242 It is important to ensure that class members are informed of the mechanics and expected timing of the settlement distribution scheme. However, class members in all class actions do need to have basic information communicated to them clearly and succinctly. Vince Morabito, An Empirical Study of Australias Class Action Regimes, Fifth Report: The First Twenty-Five Years of Class Actions in Australia (July 2017) 33. Submissions 10 (Victorian Legal Services Board and Commissioner), 13 (Maurice Blackburn Lawyers), 15 (Phi Finney McDonald), See also Submissions 15 (Phi Finney McDonald), 28 (Slater and Gordon Lawyers), 30 (Supreme Court of Victoria). Until 2018, Mr Gardner was Senior Legal Advisor to the Victorian Director of Public Prosecutions, with 36 years experience in the Crown Solicitors Office and the Office of Public Prosecutions (OPP) as a prosecution solicitor. These reviews include the ALRCs review of the federal civil justice system in 2000,[26] the VLRCs review of the Victorian civil justice system in 2008,[27] the report by the Access to Justice Taskforce of the Commonwealth Attorney-Generals Department in 2009,[28] and the report of the Australian Productivity Commission on access to justice arrangements in 2014. Recommendation 17 seeks to strengthen the role of the Court in resolving these disputes. 4.161 The role of the Court at settlement approval is particularly difficult due to the adversarial void that exists when both sides have become friends of the deal. Web855.300.4459. It was also recommended that compulsory publication of final reports be considered, to allow a transparent means of comparing law firms involved in class actions. There was agreement among stakeholders, however, that existing cross-vesting powers, both in Victoria and nationally, are not adequate to ensure efficient cooperation between state and federal jurisdictions where multiple class actions arise. Michael Legg, Class Actions, Litigation Funding and Access to Justice [2017] 57 University of New South Wales Law Research Series 1, 8
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