In Money Max Int Pty Ltd (Trustee) v QBE Insurance Group Limited, the Full Court of the Federal Court of Australia has said that it proposes to make a ‘common fund order’ in relation to the litigation funding charges and legal costs of an ‘open class’ representative proceeding brought under Pt IVA of the Federal Court of Australia Act 1976 (Cth) (“FCA Act”).
The Full Court was satisfied that the proposed order, to be made at an early stage of the proceeding, was within power and was appropriate to ensure that justice was done in the proceeding pursuant to ss 33ZF and 23 of the FCA Act. Although the Full Court’s decision was based on the interests of justice in the proceeding rather than on broader policy considerations, the Full Court said that a common fund approach to litigation funding charges and legal costs was consistent with the aims of Pt IVA of the FCA Act.
Significantly, the proposed order will only be made if the litigation funder gives an undertaking that it will comply with funding terms which provide for the percentage rate of the litigation funding charges to be later fixed and approved by the Court.
The Full Court has given the parties an opportunity to make further submissions on the proposed order before pronouncing it. Read further about the case here.
