Common funds in Australia – Federal Court clarifies law by delivering most significant Class Action and Litigation Funding judgment in a decade?

A decade and two months since a High Court of Australia decision gave a clear greenlight to litigation funding down under, our Federal Court has now increased litigation funders certainty, at an early stage of proceedings, that they will be able to take their success fee in a class action from all group members, despite not having a funding agreement with each of those group members. 

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Plaintiff’s access to defendant insurance

CGU Insurance Limited v Blakeley [2016] HCA 2

The High Court of Australia upheld orders granting claimant liquidators the right to join the defendants’ insurer to the proceeding, to pursue the claim against the defendants’ insurer (who had rejected the defendants’ insurance claim). In dismissing the insurer’s High Court appeal, the High Court reviewed sections 562, 588G and 588M of the Corporations Act (Cth), and considered state and federal jurisdictions over those provisions by virtue of section 79 of the Judiciary Act (Cth).

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Top-up security for costs where proceeding funded

Camping Warehouse Australia Pty Ltd (Formerly Mountain Buggy Australia Pty Ltd) v Downer EDI Ltd [2016] VSC 29

During the trial of a class action a plaintiff was ordered to provide security for costs, at pain of the proceeding being stayed. The case settled not long after. In another case, a delay in an application for security for costs did not prevent it being ordered, however the Court adjusted the period of costs secured.

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