Pearson v State of Queensland (No 3) [2023] FCA 203

Pearson v State of Queensland (No 3) [2023] FCA 203

It is fair and reasonable to amend the Settlement Distribution Scheme to restrict final distribution of residue monies to those claimants determined to be eligible, alive as at 30 November 2020, and residing in Australia, because distributing small amounts to others would be inefficient, wasteful, and disproportionate to administrative and banking costs. The increase in the Administrators' fee estimate is justified due to unanticipated increases in workload, complications caused by COVID-19, and expanded responsibilities. Other administrative orders sought are also appropriate in the circumstances.

Parties
Applicant: Hans Pearson; Respondent: State of Queensland
Jurisdiction
Australia
Judgment Date
10 March 2023
Procedural Posture
Representative Proceeding (class Action) / Post Settlement Administration; Application by Administrator for Amendments and Approvals
Outcome
Application approved; orders as sought granted.
Legal Topics
Settlement Distribution Scheme, Administration Costs, Class Action Settlements, Distribution of Funds, Scheme Amendment Procedures
Commercial Law Corporations Law Class Actions Settlement Distribution Scheme Administration Costs Class Action Settlements Distribution of Funds Scheme Amendment Procedures

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Parties

Hans Pearson

Applicant

State of Queensland

Respondent

Procedural Posture

Representative Proceeding (class Action) / Post Settlement Administration; Application by Administrator for Amendments and Approvals

Legal Issues

  1. 1 Whether to amend the Settlement Distribution Scheme to limit distribution of residue monies to living claimants residing in Australia
  2. 2 Whether to approve an increased fee estimate for the Administrators
  3. 3 Whether to extend the time for distributing the Settlement Distribution Fund residue

Ratio Decidendi

It is fair and reasonable to amend the Settlement Distribution Scheme to restrict final distribution of residue monies to those claimants determined to be eligible, alive as at 30 November 2020, and residing in Australia, because distributing small amounts to others would be inefficient, wasteful, and disproportionate to administrative and banking costs. The increase in the Administrators' fee estimate is justified due to unanticipated increases in workload, complications caused by COVID-19, and expanded responsibilities. Other administrative orders sought are also appropriate in the circumstances.

Court Disposition

Application approved; orders as sought granted.

Orders

  • Amended the Scheme by insertion of clause 58A restricting final distributions to living claimants residing in Australia as at 30 November 2020.
  • Granted retrospective effect to the amendments from 17 January 2020.