Tredrea v KPMG Financial Advisory Services (Australia) Pty Ltd (No 3) [2019] NSWSC 871

Tredrea v KPMG Financial Advisory Services (Australia) Pty Ltd (No 3) [2019] NSWSC 871

The Court declined to approve the common fund order or the quantum of legal costs as originally applied, finding that there was insufficient evidence to demonstrate objective reasonableness or enforceability. The applications should be resolved with an independent Administrator (Grant Thornton) acting as...

Source-derived case information.

Parties
Plaintiff: Edgar George Tredrea; Defendant: KPMG Financial Advisory Services (Australia) Pty Ltd; Funder: LCM Operations Pty Ltd; Administrator: Grant Thornton Australia Ltd
Jurisdiction
Australia
Judgment Date
30 July 2019
Procedural Posture
Representative Proceedings (class Action) / Settlement Approval (post Hearing), Consequential Order Determination
Outcome
Application for common fund order and approval of legal costs not acceded to in current form; Administrator appointed as contradictor; issues to be resolved with further directions or agreement.
Legal Topics
Representative Proceedings, Common Fund Order, Settlement Distribution, Litigation Funding, Legal Costs, Administration of Settlement, Approval of Settlement
Civil Procedure Equity Class Actions Commercial Law Representative Proceedings Common Fund Order Settlement Distribution Litigation Funding +3 more

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Parties

Edgar George Tredrea

Plaintiff

KPMG Financial Advisory Services (Australia) Pty Ltd

Defendant

LCM Operations Pty Ltd

Funder

Grant Thornton Australia Ltd

Administrator

Procedural Posture

Representative Proceedings (class Action) / Settlement Approval (post Hearing), Consequential Order Determination

Legal Issues

  1. 1 Whether the Court should approve a common fund order in favour of litigation funder LCM
  2. 2 Whether commission sought by LCM is reasonable and should be capped
  3. 3 Whether legal costs by Piper Alderman are reasonable for deduction from settlement proceeds

Ratio Decidendi

The Court declined to approve the common fund order or the quantum of legal costs as originally applied, finding that there was insufficient evidence to demonstrate objective reasonableness or enforceability. The applications should be resolved with an independent Administrator (Grant Thornton) acting as contradictor for Settlement Group Members, either by agreement or through adversarial process. Proper assessment and representation of group member interests are required before such orders can be made.

Court Disposition

Application for common fund order and approval of legal costs not acceded to in current form; Administrator appointed as contradictor; issues to be resolved with further directions or agreement.

Orders

  • Grant Thornton directed to bring in short minutes of order to give effect to the judgment.
  • Grant Thornton appointed as Administrator of settlement funds and respondent to common fund and costs applications.