Southernwood v Brambles Limited [2019] FCA 1021

Southernwood v Brambles Limited [2019] FCA 1021

The appropriate case management solution for two overlapping funded open securities class actions, despite the absence of agreement between applicants' firms and funders, is consolidation of the actions with joint legal representation and a common fund order, accompanied by orders and protocols to ensure cooperative conduct and minimisation of duplicated costs. This best promotes the overarching purpose of just, efficient, and cost-effective resolution under s 37M and safeguards justice in the proceedings under s 33ZF, given the large number of class members, their aggregate claim values, and their existing retainers/funding arrangements. Safeguards including a cooperative litigation...

Parties
Applicant: Holly Southernwood; Applicant: William Vincent Kidd and Mary Agnes Collum as Trustees for the Magness-Bennett Superannuation Fund; Respondent: Brambles Limited
Jurisdiction
Australia
Judgment Date
28 June 2019
Procedural Posture
Representative Proceedings (open Securities Class Action) / Interlocutory Case Management, Consolidation, and Common Fund Order
Outcome
The two competing class actions are consolidated; joint applicants represented by two firms of solicitors allowed; common fund order granted; protocols and costs referee imposed to safeguard against duplicated costs.
Legal Topics
Class Actions, Case Management, Consolidation of Proceedings, Common Fund Orders, Costs
Civil Procedure Corporations Law Securities Class Actions Case Management Consolidation of Proceedings Common Fund Orders Costs

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Parties

Holly Southernwood

Applicant

William Vincent Kidd and Mary Agnes Collum as Trustees for the Magness-Bennett Superannuation Fund

Applicant

Brambles Limited

Respondent

Procedural Posture

Representative Proceedings (open Securities Class Action) / Interlocutory Case Management, Consolidation, and Common Fund Order

Legal Issues

  1. 1 How should the Federal Court manage competing overlapping securities class actions against the same respondent on behalf of the same class members?
  2. 2 Is consolidation of proceedings appropriate in the absence of agreement between applicants, funders, and solicitors?
  3. 3 Should a common fund order be made to regulate funding and costs for all class members regardless of funding agreement?

Ratio Decidendi

The appropriate case management solution for two overlapping funded open securities class actions, despite the absence of agreement between applicants' firms and funders, is consolidation of the actions with joint legal representation and a common fund order, accompanied by orders and protocols to ensure cooperative conduct and minimisation of duplicated costs. This best promotes the overarching purpose of just, efficient, and cost-effective resolution under s 37M and safeguards justice in the proceedings under s 33ZF, given the large number of class members, their aggregate claim values, and their existing retainers/funding arrangements. Safeguards including a cooperative litigation...

Court Disposition

The two competing class actions are consolidated; joint applicants represented by two firms of solicitors allowed; common fund order granted; protocols and costs referee imposed to safeguard against duplicated costs.

Orders

  • Consolidation of William Vincent Kidd & Mary Agnes Collum as Trustees for Magness-Bennett Superannuation Fund v Brambles Limited (VID 1006/2018) with Holly Southernwood v Brambles Limited (VID 972/2018) into consolidated proceeding VID 972/2018.
  • Joint applicants (Southernwood and Kidd) to be represented by both Maurice Blackburn and Slater & Gordon; litigation committee protocol established; one address/email for service; one set of counsel; joint expert witness and discovery process.