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Snapshot

  • The Victorian Parliament is on the cusp of making a major change to class actions practice, and arguably Australian litigation culture, through permitting ‘group costs orders’ in class actions.
  • The change may make Victoria a magnet for class actions litigation, unless other states and the Federal Parliament follow suit.
  • The interpretation of the new provision may be influenced by the recent High Court decision rejecting common fund orders for litigation funders based on legislation using the same wording.

The Victorian Parliament is on the cusp of making a major change to class actions practice, and arguably Australian litigation culture, through permitting ‘group costs orders’ in class actions. The Justice Legislation Miscellaneous Amendments Bill 2019 (Vic) amends Part 4A of the Supreme Court Act 1986 (Vic) by inserting s 33ZDA. The change may make Victoria a magnet for class actions litigation, unless other states and the Federal Parliament follow suit.

The option for plaintiff lawyers to seek a percentage of class action damages as their fee in Victoria may see class filings fall in NSW and other jurisdictions as lawyers may determine that they can make a higher return on their efforts through assuming greater risk in a Victorian class action.

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