Muswellbrook Shire Council v The Royal Bank of Scotland NV [2017] FCA 414

FEDERAL COURT OF AUSTRALIA

Muswellbrook Shire Council v The Royal Bank of Scotland NV [2017] FCA 414 File number: NSD 1322 of 2012

Judge: WIGNEY J

Date of judgment: 21 April 2017

Catchwords: PRACTICE AND PROCEDURE – representative proceeding – application for Court approval of settlement of proceedings under s 33V of the Federal Court of Australia Act 1976 (Cth) – whether the settlement is fair and reasonable and in the interests of the group members as a whole – factors relevant to the reasonableness of the settlement – where the Court ordered that group members be sent notices prior to mediation offering participating group members the opportunity to opt out and requiring non-participating group members to register for the settlement, opt out or do nothing – where failure to register or opt out meant non-participating group members were excluded from benefit of settlement and barred from commencing future proceedings against the respondents – whether settlement is fair and reasonable to non-participating group members – whether fair and reasonable that non-participating group members are excluded from participating in settlement – whether strong and compelling reasons for approving a settlement that gives preferential treatment to participating group members

Legislation: Australian Securities and Investments Commission Act 2001 (Cth), s 12DA Corporations Act 2001 (Cth), ss 1041E, 1041H Federal Court of Australia Act 1976 (Cth), Part IVA, ss 33J, 33V, 33X, 33Y, 33ZB, 33ZF, 37AF, 37AG Fair Trading Act 1942 (NSW), s 42

Cases cited: ABN Amro Bank NV v Bathurst Regional Council (2014) 224 FCR 1 Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5) [2012] FCA 1200 Muswellbrook Shire Council v The Royal Bank of Scotland NV [2016] FCA 819 Newstart 123 Pty Ltd v Billabong International Ltd [2016] FCA 1194 Stanford v DePuy International Ltd (No 6) [2016] FCA 1452