Lukey v Corporate Investment Australia Funds Management Pty Ltd [2003] FCA 1602

Lukey v Corporate Investment Australia Funds Management Pty Ltd [2003] FCA 1602

Because all 154 named group members had accepted the offer of settlement, the claims against Professor Valentine faced significant issues including difficulties with principal liability, possible statutory defences, an estoppel defence and limited prospects of recovery from him, the proposed settlement dismissing the claims against him with no order as to costs was fair and reasonable and should be approved under s 33V.

Jurisdiction
Australia
Judgment Date
08 December 2003
Procedural Posture
Representative Proceeding Under Pt IVA of the Federal Court of Australia Act 1976 (cth) Arising From Alleged Misleading and Deceptive Statements in a Prospectus / Application for Approval of Settlement Under S 33 V and Related Cross Claim Orders; Proceeding Stood Over Part Heard
Outcome
Settlement approved under s 33V; judgment entered in favour of the Sixth Respondent on the applicant's claims without admission; no costs order between the applicant and the Sixth Respondent; leave granted to discontinue the Sixth Cross-Claim; proceeding stood over part heard to 9 December 2003.
Legal Topics
['approval of Class Action Settlement Under S 33 V' 'misleading and Deceptive Prospectus Statements' "directors' Liability for Prospectus Contents" 'accessorial Liability Under the Corporations Law' 'estoppel Defence' 'contribution or Indemnity in Equity' 'insurance Indemnity Cross Claim']
['representative Proceedings' 'corporations Law' 'equity' 'insurance'] ['approval of Class Action Settlement Under S 33 V' 'misleading and Deceptive Prospectus Statements' "directors' Liability for Prospectus Contents" 'accessorial Liability Under the Corporations Law' 'estoppel Defence' 'contribution or Indemnity in Equity' 'insurance Indemnity Cross Claim']

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Procedural Posture

Representative Proceeding Under Pt IVA of the Federal Court of Australia Act 1976 (cth) Arising From Alleged Misleading and Deceptive Statements in a Prospectus / Application for Approval of Settlement Under S 33 V and Related Cross Claim Orders; Proceeding Stood Over Part Heard

Legal Issues

  1. 1 ['Whether the proposed settlement between the applicant, group members and Professor Valentine should be approved under s 33V of the Federal Court of Australia Act 1976 (Cth).' "Whether the settlement was fair and reasonable having regard to the group members' claims, prospects of success, possible recovery, advice, duration and cost of the proceeding." "Whether Professor Valentine's Sixth Cross-Claim against the insurance underwriters should be discontinued by leave." "Whether cross-claims for contribution or indemnity against Professor Valentine had continuing utility after judgment in his favour on the applicant's claims."]

Ratio Decidendi

Because all 154 named group members had accepted the offer of settlement, the claims against Professor Valentine faced significant issues including difficulties with principal liability, possible statutory defences, an estoppel defence and limited prospects of recovery from him, the proposed settlement dismissing the claims against him with no order as to costs was fair and reasonable and should be approved under s 33V.

Court Disposition

Settlement approved under s 33V; judgment entered in favour of the Sixth Respondent on the applicant's claims without admission; no costs order between the applicant and the Sixth Respondent; leave granted to discontinue the Sixth Cross-Claim; proceeding stood over part heard to 9 December 2003.

Orders

  • ['The settlement, on the basis set out in Orders 2 and 3 below, of all claims made against the Sixth Respondent by the Applicant and all persons named in the Schedule to the Third Further Amended Application be approved pursuant to s 33V of the Federal Court of Australia Act 1976 (Cth).' 'By consent and without...