Hall v Slater & Gordon Limited [2018] FCA 2071

Hall v Slater & Gordon Limited [2018] FCA 2071

Schemes of arrangement and class action settlement approved as fair and reasonable based on insolvency risk, creditor/group member votes, limited recovery pool, procedural compliance, and proportionality of legal and funding costs. Division into separate classes of creditors not required because sufficient community of interest existed; releases and quantum of recoveries reasonable given financial circumstances.

Parties
Applicant: Matthew Hall; Respondent (vid 1213 of 2016), Plaintiff (vid 1146 of 2017): Slater & Gordon Limited; Intervener (vid 1213 of 2016): International Litigation Partners No.15 Pte Ltd; Intervener (vid 1213 of 2016 and VID 1146 of 2017): Babscay Proprietary Limited; Objector (vid 1213 of 2016): Mr Delaney
Jurisdiction
Australia
Judgment Date
21 December 2018
Procedural Posture
Representative Proceedings; Schemes of Arrangement / Settlement Approval; Scheme Approval; Cost Determination
Outcome
Schemes of arrangement approved; settlement approved; legal and funding costs approved subject to further determination; proceedings dismissed.
Legal Topics
Scheme of Arrangement Approval, Class Action Settlement Approval, Funding Costs, Group Member Releases, Division of Creditor Classes, Common Fund Orders
Corporations Law Class Actions Commercial Law Corporate Insolvency Scheme of Arrangement Approval Class Action Settlement Approval Funding Costs Group Member Releases +2 more

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Parties

Matthew Hall

Applicant

Slater & Gordon Limited

Respondent (vid 1213 of 2016), Plaintiff (vid 1146 of 2017)

International Litigation Partners No.15 Pte Ltd

Intervener (vid 1213 of 2016)

Babscay Proprietary Limited

Intervener (vid 1213 of 2016 and VID 1146 of 2017)

Mr Delaney

Objector (vid 1213 of 2016)

Procedural Posture

Representative Proceedings; Schemes of Arrangement / Settlement Approval; Scheme Approval; Cost Determination

Legal Issues

  1. 1 Whether schemes of arrangement under s 411 of the Corporations Act and related class action settlements are fair and reasonable
  2. 2 Whether creditor interests require division into separate classes
  3. 3 Whether proposed settlement is fair and reasonable and in interests of group members

Ratio Decidendi

Schemes of arrangement and class action settlement approved as fair and reasonable based on insolvency risk, creditor/group member votes, limited recovery pool, procedural compliance, and proportionality of legal and funding costs. Division into separate classes of creditors not required because sufficient community of interest existed; releases and quantum of recoveries reasonable given financial circumstances.

Court Disposition

Schemes of arrangement approved; settlement approved; legal and funding costs approved subject to further determination; proceedings dismissed.

Orders

  • Settlement of the proceeding approved on specified terms.
  • Maurice Blackburn appointed Settlement Administrator.