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Victoria’s group costs order should be extended nationwide, researcher says
The Victorian model for awarding fees to law firms for successful class actions should be used nationwide, a research group argues.
Naomi Neilson
With the state’s group costs order (GCO) model seeing claimants pocketing more than they would under a standard litigation funding model, The McKell Institute said it would be in the “interest of justice” to see it extended into Australia’s other states and territories.
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In the report, A Model for the Nation? Four Years of Victoria’s Section 33ZDA, author Max Douglass said that while the model is still young, the limited data now available proves it is more beneficial for claimants.
“Despite being operational for not even four years, the results of Victoria’s GCO regime speak for themselves,” Douglass said.
Douglass added it provides for a “more competitive and transparent return” to claimants and is an “important tool” for justice.
“[It] should be available to lawyers and their class action clients and group members in cases deemed appropriate by the court.
“There is no reason in practice or principle to prevent law firms from charging on a contingency basis in class actions under a GCO model,” he said.
“Victoria’s GCO model should, in the interests of access to justice, be replicated across all of the Commonwealth’s class action regimes. Claimants would have almost nothing to lose, and plenty to gain by having access to another option.”
The report found that since the July 2020 commencement of the GCO, Victoria has seen a much larger number of filings.
In line with this, the report said there has been “greater competition” between law firms and litigation funders.
“What is more, GCO rates approved by the Supreme Court of Victoria are similar to prevailing litigation funding rates, yet constitute the only deduction from the final award or settlement,” Douglass said.
