Spozac Pty Ltd as trustee for the LDB Family Trust t/as Not Just Cakes v Tyro Payments Ltd [2023] FCA 590

Federal Court of Australia

Spozac Pty Ltd as trustee for the LDB Family Trust t/as Not Just Cakes v Tyro Payments Ltd [2023] FCA 590 File number: NSD 1100 of 2021

Judgment of: RARES J

Date of judgment: 19 May 2023

Catchwords: REPRESENTATIVE PROCEEDINGS – approval of proposed settlement under s 33V(1) of Federal Court of Australia Act 1976 (Cth) – whether proposed settlement fair, reasonable and in interests of group members – where applicant's claims strong on liability but raised numerous legal and evidentiary difficulties as to whether loss or damage could be proved – where settlement fair and reasonable compromise and best possible outcome in circumstances – Held: settlement approved REPRESENTATIVE PROCEEDINGS – approval of proposed settlement distribution under s 33V(2) of Federal Court of Australia Act 1976 (Cth) – where distribution proposed only very small number of group members with registered substantiated claims entitled to recovery – where claimed legal and funding costs substantially diminished available funds for distribution to group members REPRESENTATIVE PROCEEDINGS – where litigation funder claimed both funding fee as percentage of gross settlement sum and part of cost of after the event insurance responding to adverse costs orders – whether after the event insurance should be at funder's cost as ordinary overhead and commercially sensible reduction of both its risk and size of funding reward

Legislation: Federal Court of Australia Act 1976 (Cth) ss 33V, 33X Competition and Consumer Act 2010 (Cth) s 87CB, Sch 2 (Australian Consumer Law)

Division: General Division