Kathleen Foley

The judge who rewarded the law firm with the lowest ever GCO proposal with carriage of an $80 million class action this week noted the competitive forces that shaped a “very good deal for group members,” but competition has its downsides, experts say.

The winning, 14 per cent contingency fee proposal by Slater & Gordon in a fight to run a class action against Star Entertainment was not driven by a desire to prevail in the contest and buy market share but was the product of a “reasoned decision” that took into account the law firm’s practice as a whole, a judge has found.

One law firm has emerged victorious in a four-way contest to run a shareholder class action against Star Entertainment with the lowest proposed group costs order since contingency fees legislation was enacted in Victoria. 

A judge has thrown out claims in a $650 million lawsuit by 38 dealers against Mercedes-Benz Australia over its decision to move to a fixed-price agency model, finding the dealers’ lawsuit sought to rewrite the terms of their agreement with the car maker on more commercially favourable terms.

The judge asked to approve a settlement in a class action against retirement village provider Aveo has sent a shot across the bow to law firms seeking to make broad confidentiality claims over the settlement, saying such claims should be kept “to a minimum” in class actions.

As the knives come out in a contest between four law firms battling to run an $80 million class action against Star Entertainment, a court-appointed barrister has named his favourites – one of which has proposed a contingency fee of just 14 per cent.

Three firms fighting for carriage of a $80 million class action against Star Entertainment say a group costs order would guard against ‘costs blowouts’ in the case and have urged a judge to ditch a no win, no fee proposal brought by fourth-to-file firm Shine Lawyers.

A judge has questioned an $11 million settlement in a class action against retirement village provider Aveo, resolving to appoint a contradictor and a costs referee amid a dispute between the plaintiff law firm and its litigation funder, which the court heard has “grave concerns” about the costs incurred in the case.

A judge overseeing two 7-Eleven class actions has signed off on $2.25 million in costs incurred by the funder and lawyers in their pitched battle to win approval for the terms of a $98 million settlement, which included deductions of more than $44 million to cover commission and fees.

A class action against Aveo Group has settled for $11 million mid trial, with the law firm that brought the case expressing regret for any “distress or anxiety” it caused and acknowledging the retirement village provider’s contracts with residents were lawful.