Dillon v RBS Group (Australia) Pty Limited (No 2) [2018] FCA 395

Dillon v RBS Group (Australia) Pty Limited (No 2) [2018] FCA 395

The settlement of the representative proceeding and claims of the applicants and group members (who have not opted out) is fair and reasonable and should be approved pursuant to s 33V of the Federal Court of Australia Act 1976 (Cth), with legal and administration costs and applicant reimbursement found to be reasonable. While the requirement for a deed poll from participating group members is, by proper construction of Part IVA, unnecessary and undesirable, approval is granted in these exceptional circumstances but is not to be regarded as precedent for future cases.

Parties
First Applicant: Rebecca Louise Dillon; Second Applicant: Rebecca Jane Dobson; First Respondent: RBS Group (Australia) Pty Limited; Second Respondent: RBS Alternative Investments (Australia) Pty Limited; Third Respondent: RBS Nominees (Australia) Pty Limited (as trustee)
Jurisdiction
Australia
Judgment Date
20 March 2018
Procedural Posture
Representative Proceeding / Class Action / Settlement Approval Application
Outcome
Settlement approved (with modifications); certain orders made; settlement sum and cost deductions approved; opt-out process for two group members; proceeding dismissed in part (amended originating application and amended statement of claim), balance remains for supervision.
Legal Topics
Settlement Approval Under S 33 V of the Federal Court of Australia Act 1976 (cth), Role of Group Members and Applicants in Class Actions, Settlement Distribution Schemes, Deed Poll Releases and Their Necessity in Class Action Settlements, Costs in Class Actions
Practice and Procedure Class Actions Commercial Law Settlement Approval Under S 33 V of the Federal Court of Australia Act 1976 (cth) Role of Group Members and Applicants in Class Actions Settlement Distribution Schemes Deed Poll Releases and Their Necessity in Class Action Settlements Costs in Class Actions

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Parties

Rebecca Louise Dillon

First Applicant

Rebecca Jane Dobson

Second Applicant

RBS Group (Australia) Pty Limited

First Respondent

RBS Alternative Investments (Australia) Pty Limited

Second Respondent

RBS Nominees (Australia) Pty Limited (as trustee)

Third Respondent

Procedural Posture

Representative Proceeding / Class Action / Settlement Approval Application

Legal Issues

  1. 1 Whether approval should be granted for the proposed settlement pursuant to s 33V of the Federal Court of Australia Act 1976 (Cth)
  2. 2 Whether participating group members should be required to execute a deed poll to participate in the settlement scheme
  3. 3 Proper extent of applicant’s role in dealing with group members' claims in a representative proceeding

Ratio Decidendi

The settlement of the representative proceeding and claims of the applicants and group members (who have not opted out) is fair and reasonable and should be approved pursuant to s 33V of the Federal Court of Australia Act 1976 (Cth), with legal and administration costs and applicant reimbursement found to be reasonable. While the requirement for a deed poll from participating group members is, by proper construction of Part IVA, unnecessary and undesirable, approval is granted in these exceptional circumstances but is not to be regarded as precedent for future cases.

Court Disposition

Settlement approved (with modifications); certain orders made; settlement sum and cost deductions approved; opt-out process for two group members; proceeding dismissed in part (amended originating application and amended statement of claim), balance remains for supervision.

Orders

  • Pursuant to s 33X, notice to be emailed to two group members advising of late opt-out options.
  • Pursuant to s 33V, the settlement is approved on terms in the Settlement Deed and Settlement Scheme including cost deductions: $4,486,787.96 legal costs, $250,000 administration costs, $169,000 further approval costs.