Kosen-Rufu Pty Ltd v Dixon Advisory and Superannuation Services Ltd [2022] FCA 573

Kosen-Rufu Pty Ltd v Dixon Advisory and Superannuation Services Ltd [2022] FCA 573

A stay of the Kosen-rufu Proceedings is appropriate, pending determination or settlement of the Watson Proceedings, as the 'no win, no fee' model offered by Shine Lawyers is more likely to result in a greater recovery for group members and is in the best interests of those members, while consolidation would introduce cost, delay, and commission risks.

Parties
Applicant: Kosen-Rufu Pty Ltd; Applicant: Trudy Stott; Applicant: Watson & Co Superannuation Pty Ltd; Respondent: Dixon Advisory and Superannuation Services Ltd; Respondent: E&P Financial Group Limited; Respondent: Alan Cochrane Dixon; Respondent: Christopher Matthew Brown
Jurisdiction
Australia
Judgment Date
18 May 2022
Procedural Posture
Representative Proceedings (class Action) / Interlocutory Applications: Stay/consolidation
Outcome
Kosen-rufu class action stayed pending resolution of the common issues in Watson Proceeding; parties to confer and submit agreed orders within 7 days.
Legal Topics
Class Actions, Litigation Funding, Stay of Proceedings, Procedure
Commercial Law Corporations Law Consumer Protection Law Class Actions Litigation Funding Stay of Proceedings Procedure

Case Brief

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Parties

Kosen-Rufu Pty Ltd

Applicant

Trudy Stott

Applicant

Watson & Co Superannuation Pty Ltd

Applicant

Dixon Advisory and Superannuation Services Ltd

Respondent

E&P Financial Group Limited

Respondent

Alan Cochrane Dixon

Respondent

Christopher Matthew Brown

Respondent

Procedural Posture

Representative Proceedings (class Action) / Interlocutory Applications: Stay/consolidation

Legal Issues

  1. 1 Should two overlapping class actions be consolidated or one stayed?
  2. 2 Is a 'no win, no fee' funding model or litigation funder commission more in the interests of group members?
  3. 3 Should a co-operation protocol include a clause regarding group member nomination for distribution terms?

Ratio Decidendi

A stay of the Kosen-rufu Proceedings is appropriate, pending determination or settlement of the Watson Proceedings, as the 'no win, no fee' model offered by Shine Lawyers is more likely to result in a greater recovery for group members and is in the best interests of those members, while consolidation would introduce cost, delay, and commission risks.

Court Disposition

Kosen-rufu class action stayed pending resolution of the common issues in Watson Proceeding; parties to confer and submit agreed orders within 7 days.

Orders

  • The Kosen-rufu Proceeding (VID 640 of 2021) is stayed pending determination of the common issues in the Watson Proceeding (VID 769 of 2021).
  • Liberty to Kosen-rufu to apply in Watson Proceeding in relation to mediation.