P Dawson Nominees Pty Ltd v Multiplex Limited [2007] FCA 1061

P Dawson Nominees Pty Ltd v Multiplex Limited [2007] FCA 1061

A criterion requiring group members to have entered into a funding agreement with a litigation funder is not inconsistent with Part IVA of the Federal Court of Australia Act 1976 (Cth) and does not provide grounds under s 33N(1)(d) to discontinue the representative proceeding; such an arrangement is not inappropriate nor does it subvert the opt-out model required by the Act.

Parties
Applicant: P Dawson Nominees Pty Ltd; Respondent: Multiplex Limited; Respondent: Multiplex Funds Management Limited
Jurisdiction
Australia
Judgment Date
19 July 2007
Procedural Posture
Group Proceeding (class Action) / Interlocutory Application to Discontinue as Group Proceeding
Outcome
Respondents' application dismissed
Legal Topics
Class Actions, Group Proceedings, Opt in Vs Opt Out Procedures, Litigation Funding Agreements, Federal Court of Australia Act 1976 (cth) Part IVA
Practice and Procedure Securities Law Litigation Funding Class Actions Group Proceedings Opt in Vs Opt Out Procedures Litigation Funding Agreements Federal Court of Australia Act 1976 (cth) Part IVA

Case Brief

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Parties

P Dawson Nominees Pty Ltd

Applicant

Multiplex Limited

Respondent

Multiplex Funds Management Limited

Respondent

Procedural Posture

Group Proceeding (class Action) / Interlocutory Application to Discontinue as Group Proceeding

Legal Issues

  1. 1 Whether the requirement that group members have a single litigation funder is inconsistent with the group proceeding provisions in Part IVA of the Federal Court of Australia Act 1976 (Cth)
  2. 2 Whether the proceeding should be ordered to no longer continue as a group proceeding under s 33N(1)(d)

Ratio Decidendi

A criterion requiring group members to have entered into a funding agreement with a litigation funder is not inconsistent with Part IVA of the Federal Court of Australia Act 1976 (Cth) and does not provide grounds under s 33N(1)(d) to discontinue the representative proceeding; such an arrangement is not inappropriate nor does it subvert the opt-out model required by the Act.

Court Disposition

Respondents' application dismissed

Orders

  • The application that the proceeding no longer continue as a group proceeding be dismissed.
  • The respondents pay the applicant's costs of the application.