The Australian Law Reform Commission (ALRC) has released its final report into class action proceedings and third-party litigation funders.
The Commission’s report Integrity, Fairness and Efficiency—An Inquiry into Class Action Proceedings and Third-Party Litigation Funders makes 24 recommendations relating to the eligibility of victims to take part in class actions, the competition between class actions for the same offence, the role of third-party case funders; and the potential for conflict of interest among solicitors
According to the Acting Attorney-General who tabled the report in Parliament, Greg Hunt, the report can be expected to stimulate debate amongst consumer advocates, the legal profession, the business sector, and across the wider community.
“With class actions becoming more common in Courts across Australia, the Government wanted to ensure the costs of such proceedings are appropriate and proportionate and that the interests of plaintiffs and class members are protected,” mr Hunt said.
“There is a significant risk, in such proceedings, that members of plaintiff groups may be required to pay lawyers’ fees which are exorbitant and unjustifiable.”
He said that unlike lawyers, third party funding entities were not bound by professional ethical obligations and not subject to Commonwealth, State or Territory regulation to address how they may participate in the Australian legal system.
He said the ALRC was asked to consider whether Commonwealth regulation should concern itself with the lack of ethical constraints on the funders’ operations such as those binding legal practitioners.
Mr Hunt said that as the ALRC’s recommendations were now publicly available the Government will developing a response to the report after engaging with stakeholders.
The ALRC’s 334-page report can be accessed at this PS News link.
