Farey v National Australia Bank Ltd [2014] FCA 1242

Farey v National Australia Bank Ltd [2014] FCA 1242

The Court made the class closure, opt out, registration, notice suppression and funding-related orders because s 33ZF conferred a broad discretionary power to make such orders, the orders were sought to facilitate settlement negotiations by identifying participating group members and limiting future multiplicity, and the proposed notice and advertisement regime adequately informed registered and unregistered group members of their rights and of the consequences of registering, opting out or doing nothing by 27 January 2015.

Jurisdiction
Australia
Judgment Date
18 November 2014
Procedural Posture
Representative Proceeding Under Part IVA of the Federal Court of Australia Act 1976 (cth) Concerning Bank Exception Fees / Application for Class Closure, Opt Out, Registration, Notice and Related Funding Orders to Facilitate Settlement Negotiations
Outcome
Orders made as sought, with minor amendments to be incorporated in chambers.
Legal Topics
['class Closure Orders' 'opt Out Notices' 'group Member Registration' 'settlement Facilitation' 'bank Exception Fees' 'funding Commission']
['representative Proceedings' 'civil Procedure' 'banking and Finance' 'litigation Funding'] ['class Closure Orders' 'opt Out Notices' 'group Member Registration' 'settlement Facilitation' 'bank Exception Fees' 'funding Commission']

Case Brief

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Procedural Posture

Representative Proceeding Under Part IVA of the Federal Court of Australia Act 1976 (cth) Concerning Bank Exception Fees / Application for Class Closure, Opt Out, Registration, Notice and Related Funding Orders to Facilitate Settlement Negotiations

Legal Issues

  1. 1 ['Whether the Court had power under s 33ZF of the Federal Court of Australia Act 1976 (Cth) to make orders opening the class for a short period and then closing it before any settlement approval application.' 'Whether the proposed opt out and registration notices adequately informed current and potential group members of their rights and the consequences of doing nothing.' 'Whether the orders should require unregistered group members who do not opt out to remain bound by the proceeding but, subject to further order, not receive a distribution from any settlement amount.']

Ratio Decidendi

The Court made the class closure, opt out, registration, notice suppression and funding-related orders because s 33ZF conferred a broad discretionary power to make such orders, the orders were sought to facilitate settlement negotiations by identifying participating group members and limiting future multiplicity, and the proposed notice and advertisement regime adequately informed registered and unregistered group members of their rights and of the consequences of registering, opting out or doing nothing by 27 January 2015.

Court Disposition

Orders made as sought, with minor amendments to be incorporated in chambers.

Orders

  • ['The stay ordered on 6 March 2014 was lifted to the extent necessary to make the orders.' 'The applicants were granted leave under ss 33K and/or 33ZF of the Federal Court of Australia Act 1976 (Cth) to file a Further Amended Originating Application and Further Amended Statement of Claim.' 'Under s 33J, 4.00 pm on...