Kelly v Willmott Forests Ltd (in liquidation) (No 5) [2017] FCA 689

Kelly v Willmott Forests Ltd (in liquidation) (No 5) [2017] FCA 689

The revised settlement, after rectifying deficiencies identified during the refusal of the first proposed settlement (notably the exclusion of binding loan enforceability admissions, better disclosure to and opt-out rights for class members, and improved assessment of prospects and costs), fell within a range of...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
20 June 2017
Procedural Posture
Class Action/representative Proceedings / Settlement Approval Application (s 33 V Federal Court of Australia Act 1976 (cth))
Outcome
Settlement approved; legal costs approved
Legal Topics
['settlement Approval' 'reasonableness of Legal Costs' 'managed Investment Schemes' 'class Member Rights' 'conflicts of Interest in Class Actions']
['practice and Procedure' 'class Actions' 'corporations Law' 'insolvency'] ['settlement Approval' 'reasonableness of Legal Costs' 'managed Investment Schemes' 'class Member Rights' 'conflicts of Interest in Class Actions']

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Procedural Posture

Class Action/representative Proceedings / Settlement Approval Application (s 33 V Federal Court of Australia Act 1976 (cth))

Legal Issues

  1. 1 ['Whether the proposed revised settlement of four class actions should be approved under s 33V of the Federal Court of Australia Act 1976 (Cth) as fair and reasonable for class members including as between class members;' "Whether legal costs charged to class members by the applicant's solicitors are fair and reasonable and should be approved."]

Ratio Decidendi

The revised settlement, after rectifying deficiencies identified during the refusal of the first proposed settlement (notably the exclusion of binding loan enforceability admissions, better disclosure to and opt-out rights for class members, and improved assessment of prospects and costs), fell within a range of reasonable outcomes for class members when weighed against the poor prospects of success in most proceedings, limited recoveries, and complexity of litigation. The legal costs were found to be fair and reasonable in light of the Second Harris Report and the Contradictor’s acceptance. Thus, the Court approved the revised settlement and legal costs (orders made 19 December 2016;...

Court Disposition

Settlement approved; legal costs approved

Orders

  • ['Orders made 19 December 2016 approving the revised settlement in all four proceedings under s 33V of the Federal Court of Australia Act 1976 (Cth).' 'Legal costs charged by Macpherson & Kelley Lawyers to class members are approved as fair and reasonable.' 'Stay on approval orders lifted upon delivery of these...