Fordham v Commonwealth Bank of Australia [2023] FCA 1106

Fordham v Commonwealth Bank of Australia [2023] FCA 1106

The settlement of $50 million is just, fair, and reasonable under s 33V of the Federal Court of Australia Act 1976 (Cth), given the complexity, risks, number of group members, and the overall compensation outcomes. The deductions for legal costs, scheme administration, ATE insurance, and reimbursement payments are reasonable based on expert costs evidence, and the settlement distribution mechanism is just, reflecting the relative strengths and risks of group member claims. Orders approving the settlement, allowing specific deductions, registering late group members, and making confidentiality orders are appropriate.

Jurisdiction
Australia
Judgment Date
15 September 2023
Procedural Posture
Representative Proceeding (class Action) / Settlement Approval (final Orders)
Outcome
Settlement approved and proceeding dismissed upon final distribution, with associated orders made for the dismissal, costs, administration, registrations, and confidentiality.
Legal Topics
['approval of Class Action Settlement' 'misleading or Deceptive Conduct' 'unconscionable Conduct' 'consumer Credit Insurance' 'legal Costs and Settlement Administration' 'adverse Costs Insurance']
['commercial Law' 'consumer Protection Law' 'corporations Law' 'insurance Law'] ['approval of Class Action Settlement' 'misleading or Deceptive Conduct' 'unconscionable Conduct' 'consumer Credit Insurance' 'legal Costs and Settlement Administration' 'adverse Costs Insurance']

Case Brief

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Procedural Posture

Representative Proceeding (class Action) / Settlement Approval (final Orders)

Legal Issues

  1. 1 ['Whether the proposed settlement is fair and reasonable to group members under s 33V of the Federal Court of Australia Act 1976 (Cth)' "Whether the proposed Settlement Distribution Scheme is just including the loss assessment formula and weightings applied to group members' claims" 'Whether specific deductions from the settlement fund (legal costs, administration expenses, ATE insurance, reimbursement payments) should be allowed and are reasonable']

Ratio Decidendi

The settlement of $50 million is just, fair, and reasonable under s 33V of the Federal Court of Australia Act 1976 (Cth), given the complexity, risks, number of group members, and the overall compensation outcomes. The deductions for legal costs, scheme administration, ATE insurance, and reimbursement payments are reasonable based on expert costs evidence, and the settlement distribution mechanism is just, reflecting the relative strengths and risks of group member claims. Orders approving the settlement, allowing specific deductions, registering late group members, and making confidentiality orders are appropriate.

Court Disposition

Settlement approved and proceeding dismissed upon final distribution, with associated orders made for the dismissal, costs, administration, registrations, and confidentiality.

Orders

  • ['Settlement of the proceeding approved on the terms of the Settlement Deed and Settlement Distribution Scheme (as exhibited).' 'Applicant authorised to enter into and give effect to the Settlement Deed for and on behalf of Bound Group Members.' 'Slater and Gordon appointed Scheme Administrator with assistance from...