Krieger v Colonial First State Investments Limited [2024] FCA 1402

Krieger v Colonial First State Investments Limited [2024] FCA 1402

The proposed settlement of $100 million, including costs, legal fees, and funding charges, is fair and reasonable for group members to be bound, including as between group member categories, with deductions for reasonable legal and funding costs and reimbursement payments as justified. The SDS and distribution methodology are just, compensation eligibility criteria are suitably defined, and a common fund order at 23.1% for funding charges is proportionate and commercially realistic given case complexity, costs, and risks undertaken by the funder. Objections received do not justify refusing approval. Confidentiality of certain material and opinion is necessary only to the extent to prevent...

Parties
First Applicant: Marcel Eugene Krieger; Second Applicant: Jason Ray Burton; First Respondent: Colonial First State Investments Limited; Second Respondent: Avanteos Investments Limited; Intervener: Augusta Pool 1 UK Limited
Jurisdiction
Australia
Judgment Date
03 June 2024
Procedural Posture
Representative (class Action) Proceeding / Interlocutory Application for Settlement Approval Under S 33 V Federal Court of Australia Act
Outcome
Proposed settlement approved; deductions for legal costs, funding charges, and reimbursement payments allowed; orders made as per attached order.
Legal Topics
Class Actions, Settlement Approval, Trustee Duties, Conflicts of Interest, Unconscionable Conduct, Litigation Funding, Common Fund Order
Commercial Law Corporations Law Superannuation Law Equity Financial Services Law Class Actions Settlement Approval Trustee Duties +4 more

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Parties

Marcel Eugene Krieger

First Applicant

Jason Ray Burton

Second Applicant

Colonial First State Investments Limited

First Respondent

Avanteos Investments Limited

Second Respondent

Augusta Pool 1 UK Limited

Intervener

Procedural Posture

Representative (class Action) Proceeding / Interlocutory Application for Settlement Approval Under S 33 V Federal Court of Australia Act

Legal Issues

  1. 1 Whether proposed settlement is fair and reasonable in the interests of group members, including as between group members
  2. 2 Whether litigation funding charges, legal costs, and reimbursement payments are reasonable and proportionate
  3. 3 Whether common fund order is appropriate

Ratio Decidendi

The proposed settlement of $100 million, including costs, legal fees, and funding charges, is fair and reasonable for group members to be bound, including as between group member categories, with deductions for reasonable legal and funding costs and reimbursement payments as justified. The SDS and distribution methodology are just, compensation eligibility criteria are suitably defined, and a common fund order at 23.1% for funding charges is proportionate and commercially realistic given case complexity, costs, and risks undertaken by the funder. Objections received do not justify refusing approval. Confidentiality of certain material and opinion is necessary only to the extent to prevent...

Court Disposition

Proposed settlement approved; deductions for legal costs, funding charges, and reimbursement payments allowed; orders made as per attached order.

Orders

  • Material in Annexures A and B declared confidential under ss 37AF and 37AG(1)(a) of the Federal Court of Australia Act 1976 (Cth) to extent specified until further order or expiry of appeal period.
  • Settlement of proceeding on terms of the Settlement Deed and Settlement Distribution Scheme approved under s 33V.