Richards v Macquarie Bank Limited (No 4) [2013] FCA 438

Richards v Macquarie Bank Limited (No 4) [2013] FCA 438

The settlement was approved because, viewed globally and in its internal operation, it was fair and reasonable. The litigation involved real risks, a large amount at stake, likely appeals including a possible special leave application, and potentially years of further delay. The settlement provided certainty at a late stage of difficult and complex litigation. The proposed legal and administration costs were supported by expert opinion and were reasonable. The differential distribution, including a 35% premium to funding group members, reasonably recognised the risk and sacrifice of those who contributed to funding the proceeding and was not idiosyncratic or unreasonable. The indemnity...

Jurisdiction
Australia
Judgment Date
03 May 2013
Procedural Posture
Representative Proceeding Under Pt IVA of the Federal Court of Australia Act 1976 (cth) / Application for Court Approval of Proposed Settlement Under S 33 V After Trial Submissions Had Been Made and Judgment Had Been Reserved
Outcome
Settlement approved; whole of the proceedings dismissed; each party to bear its own costs.
Legal Topics
['settlement Approval Under S 33 V' 'fair and Reasonable Settlement' 'internal Distribution of Settlement Proceeds' 'litigation Funding Premium' 'confidentiality Orders' 'margin Loans and Managed Investment Schemes']
['practice and Procedure' 'representative Proceedings' 'corporations' 'consumer Protection'] ['settlement Approval Under S 33 V' 'fair and Reasonable Settlement' 'internal Distribution of Settlement Proceeds' 'litigation Funding Premium' 'confidentiality Orders' 'margin Loans and Managed Investment Schemes']

Case Brief

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Procedural Posture

Representative Proceeding Under Pt IVA of the Federal Court of Australia Act 1976 (cth) / Application for Court Approval of Proposed Settlement Under S 33 V After Trial Submissions Had Been Made and Judgment Had Been Reserved

Legal Issues

  1. 1 ['Whether the proposed settlement between the applicant and Macquarie should be approved under s 33V of the Federal Court of Australia Act 1976 (Cth).' 'Whether the overall settlement was fair and reasonable having regard to the claims, litigation risks, likely appeals, delay and costs.' 'Whether the internal distribution of the settlement sum, including a 35% premium for funding group members, was fair and reasonable.' 'Whether legal costs and administration costs proposed under the settlement distribution scheme were reasonable.' 'Whether the indemnity provided to Macquarie by members of the representative group made the settlement unfair or unreasonable.']

Ratio Decidendi

The settlement was approved because, viewed globally and in its internal operation, it was fair and reasonable. The litigation involved real risks, a large amount at stake, likely appeals including a possible special leave application, and potentially years of further delay. The settlement provided certainty at a late stage of difficult and complex litigation. The proposed legal and administration costs were supported by expert opinion and were reasonable. The differential distribution, including a 35% premium to funding group members, reasonably recognised the risk and sacrifice of those who contributed to funding the proceeding and was not idiosyncratic or unreasonable. The indemnity...

Court Disposition

Settlement approved; whole of the proceedings dismissed; each party to bear its own costs.

Orders

  • ['Pursuant to ss 33V and 33ZF of the Federal Court of Australia Act 1976 (Cth), the settlement of the proceeding between the applicant and the respondent was approved on the terms of the deed of settlement and the Settlement Distribution Scheme, subject to specified amendments.' 'The applicant was authorised nunc...