31 October 2016
For the first time, the Full Court of the Federal Court of Australia has made a common fund order, which entitles a litigation funder to be paid a portion of all class members’ damages in an open class action, regardless of whether they have signed a funding agreement.
Stephen O’Dowd, Senior Director of Litigation Funding, reviews the potential impact of the Court’s decision in Money Max Int Pty Ltd (Trustee) v QBE Insurance Group Limited .
He says: “This is a very significant decision, although its effect on the litigation funding landscape for class actions in Australia remains uncertain. In order to protect class member’s interests, the Court has seemingly placed a high price on the potential benefits a funder can receive from a common fund order.”
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