Money Max Int Pty Ltd (Trustee) v QBE Insurance Group Limited [2016] FCAFC 148

FEDERAL COURT OF AUSTRALIA

Money Max Int Pty Ltd (Trustee) v QBE Insurance Group Limited [2016] FCAFC 148 File number: VID 513 of 2015

Judges: MURPHY, GLEESON AND BEACH JJ

Date of judgment: 26 October 2016

Catchwords: PRACTICE AND PROCEDURE – representative proceedings under Part IVA of the Federal Court of Australia Act 1976 (Cth) ("the Act") – litigation funding of representative proceedings – where order is sought for all group members to pay a litigation funding commission from any settlement or judgment, not just those group members who have signed a litigation funding agreement – whether Court has power to make such an order under ss 33ZF and 23 of the Act – meaning of the expression "appropriate or necessary to ensure that justice is done in the proceeding" in s 33ZF of the Act – whether order is appropriate to ensure that justice is done in the proceeding – the significance of the low level of objection by group members – whether there is a benefit for group members in judicial approval of the rate of the funding commission – whether there is a benefit for group members of a condition that they not be worse off by reason of the order – whether there is a benefit for group members in being informed of the obligation to pay a Court-approved funding commission before deciding whether to opt out – whether the right to opt out operates to safeguard group members' interests – whether the order will be to the detriment of group members – whether a funding equalisation order is likely or to be preferred to a common fund order – whether a common fund order is consistent with the broad policy aims of the representative proceeding regime in Part IVA.

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) Corporations Act 2001 (Cth) Australian Consumer Law (Cth) Federal Court of Australia Act 1976 (Cth) Federal Court of Australia Amendment Bill 1991 (Cth)