A ruling this week that kept intact a contingency fee rate of 27.5 per cent sought by Slater & Gordon to run a shareholder class action against G8 Education might encourage law firms to seek higher percentage payouts at the outset of group proceedings in Victoria.
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Class action firms can breathe easier after first contingency fee win
Class action settlement approval hearings are not a time for the court to second guess a law firm’s contingency fee as set down in a group costs order, a judge has found, but the question of proportionality is still key, and evidence of a firm’s return on investment and hourly fees may be relevant to the final decision.