Ross Foreman

The High Court has unanimously found the Federal Court has no power to allow solicitors to take a cut of a settlement or judgment in a shareholder class action against Blue Sky, saying it would be contrary to rules against contingency fees in NSW. 

A judge has expressed worries that a class action against EY and collapsed Blue Sky Alternative Investments is “drifting” amid concerns from the defendants about "indulgent" discovery and potentially “significant” pleading changes.

As the High Court hears oral arguments this week on the reach of power to make common fund orders for firms and funders bringing class actions, Lawyerly gives a cheat sheet on what the justices could do.

A developer is on the hook for $2.6 million after a court found he misappropriated a tax refund associated with a scheme to develop property in Spring Farm, NSW and put it towards a luxury Sydney home in his wife’s name. 

The High Court has agreed to rule on whether common fund orders can ever be made in class actions, including so-called solicitors' common fund orders allowing lawyers to earn a cut of any settlement.

If it takes up the Federal Court's ruling in favour of solicitors seeking to earn a cut from a class action, the High Court will be asked to overrule its 2019 decision against common fund orders.

The High Court has been asked to overturn a Full Court decision finding lawyers can take a cut from a class action settlement under a solicitors’ common fund order and to finally settle the question of whether the court has the power to issue common fund orders at all.

Lawyers are allowed to take a cut from a class action settlement or judgment under a so-called solicitors’ common fund order, the Full Federal Court has ruled, saying they are a permissive use of the court’s power.

Hearing arguments Tuesday on whether lawyers should be permitted to earn contingency fees in Federal Court class actions, judges on a Full Court bench appeared to lean in favour of allowing so-called solicitors' common fund orders, rejecting claims they are "unjust". 

A funder that bankrolled a class action that was stayed against Dixon Advisory has argued it should receive $969,000 from a $16 million settlement reached in the competing proceedings that went ahead, saying its costs were spent to protect group members’ interests.