Rachel Mansted

The lead applicants in seven class actions against auto manufacturers over explosive Takata airbags have criticised the courts for losing their way in ensuring justice is done, in a landmark challenge to class closure orders made in the cases.

Judges have no power to order all class action members to pay a proportion of a litigation funder’s commission out of their share of a settlement, the High Court has ruled in a landmark judgment that deals a huge defeat to litigation funders.

The judge overseeing seven class actions against car makers over defective Takata airbags has shot down the applicants’ opposition to a soft class closure order in advance of mediation, saying the cases would not be a “mystery tour” from here on out.