A court has overturned a decision that franchisees bringing a class action against United Petroleum should be spared a security for costs order, saying there wasn’t enough evidence to conclude that the case would otherwise be stifled.
A franchisee class action against United Petroleum over the installation of allegedly loss-making Pie Face stores at its franchise sites has succeeded in fending off the petrol company’s bid for security, with a judge agreeing it would have a chilling effect on the unfunded case.
A franchisee class action against United Petroleum over the installation of allegedly loss-making Pie Face stores at its franchise sites is fighting two applications for security for costs which it says can’t be met, as funders take little interest in the case.
Nando’s Australia has been criticised for claiming that its costs in a dispute against a single franchisee could reach close to $2 million, with an associate judge saying the bill could kickstart a precedent that leads to “the end of litigation as we know it”.
Legal bills sent to investment firm Keybridge Capital for work related to litigation from 2019 are governed by legislation that doesn’t require cost disclosures to sophisticated clients and can’t be reviewed, a court has heard.