Muswellbrook Shire Council v The Royal Bank of Scotland NV [2017] FCA 414

Muswellbrook Shire Council v The Royal Bank of Scotland NV [2017] FCA 414

The settlement should be approved as it is fair and reasonable in all the circumstances: the settlement sum is reasonable given litigation risks and assessed by independent counsel, the distribution scheme treats participating group members equally, appropriate notice was given to all group members, and the exclusion of non-participating group members is justified due to their non-response after adequate warning and is not unfair given their apparent lack of interest in participation or pursuing claims.

Parties
Applicant: Muswellbrook Shire Council; First Respondent: The Royal Bank of Scotland NV ARBN 84 079 478 612; Third Respondent: McGraw-Hill International (UK) Limited
Jurisdiction
Australia
Judgment Date
21 April 2017
Procedural Posture
Representative Proceeding (class Action) / Court Approval of Settlement Under S 33 V Federal Court of Australia Act 1976 (cth)
Outcome
Settlement approved; proceedings dismissed with no order as to costs; confidentiality orders and other ancillary orders made.
Legal Topics
Class Actions, Settlement Approval, Misleading or Deceptive Conduct, Financial Products Liability, Negligence, Litigation Funding, Court Ordered Confidentiality
Civil Procedure Commercial Law Corporations Law Consumer Law Class Actions Settlement Approval Misleading or Deceptive Conduct Financial Products Liability +3 more

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Parties

Muswellbrook Shire Council

Applicant

The Royal Bank of Scotland NV ARBN 84 079 478 612

First Respondent

McGraw-Hill International (UK) Limited

Third Respondent

Procedural Posture

Representative Proceeding (class Action) / Court Approval of Settlement Under S 33 V Federal Court of Australia Act 1976 (cth)

Legal Issues

  1. 1 Whether the proposed settlement of representative proceedings should be approved under s 33V of the Federal Court of Australia Act 1976 (Cth)
  2. 2 Whether the settlement distribution scheme is fair and reasonable and in the interests of the group members as a whole
  3. 3 Whether exclusion of non-participating group members from benefit of the settlement is fair and reasonable

Ratio Decidendi

The settlement should be approved as it is fair and reasonable in all the circumstances: the settlement sum is reasonable given litigation risks and assessed by independent counsel, the distribution scheme treats participating group members equally, appropriate notice was given to all group members, and the exclusion of non-participating group members is justified due to their non-response after adequate warning and is not unfair given their apparent lack of interest in participation or pursuing claims.

Court Disposition

Settlement approved; proceedings dismissed with no order as to costs; confidentiality orders and other ancillary orders made.

Orders

  • Confidentiality orders made in respect of certain affidavits and exhibits (ss 37AF, 37AG Federal Court of Australia Act 1976 (Cth))
  • Applicant authorised nunc pro tunc to enter into and give effect to Settlement Deed (s 33ZF)