find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
The predicted shape of Australian class actions

The predicted shape of Australian class actions

Increased involvement from plaintiff law firms other than Slater & Gordon and Maurice Blackburn Lawyers and new litigation funders entering the market are the main trends that have been…

Increased involvement from plaintiff law firms other than Slater & Gordon and Maurice Blackburn Lawyers and new litigation funders entering the market are the main trends that have been predicted for the future of class actions.

The CEO of legal advisory firm Ally Group and former ASIC lawyer, Joanne Rees, told Lawyers Weekly that class actions are becoming more common in Australia.

"I think there are going to be other law firms - other than the traditional plaintiff law firms like Slater & Gordon and Maurice Blackburn - who will be prepared to take on the matters and also become experienced in them, but also there are other funders who will become more confident in taking on some of the larger matters," she forecast.

Litigation funders and their value in the role of helping to police company behaviour should be recognised, particularly in the case of directors, said Rees.

"I know there is concern by company directors as to these sorts of actions and what it means for them, but the reality is the funders are only going to be successful if they can prove there is a legal case and that they can be successful," she said.

"So I think, for the directors, it's like being critical of regulators pursuing them - if their behaviour is appropriate the regulators aren't going to have an action and, likewise, the funders aren't going to be successful in their action.

"So I actually see the funders as coming in as another form of regulation. Regulators often can't do everything. So with the regulators working [with litigation funders] side by side [it can] help ensure appropriate corporate behaviour."

Rees said that while the IMF currently had "first manoeuvre advantage" over other funders, she believed that in five to 10 years competition would become fierce as funds looked to expand into Australia.

"I think there is now a real confidence, as a result of some of the verdicts, that there is a future for class actions in Australia ... There wasn't necessarily confidence as to whether they were going to take off in Australia as they [had] in America. The obvious reasons were [that], under adverse costs in Australia, the plaintiff firms weren't entitled to indemnity costs to get a proportion of the success - as they are in America. So I think there really was some concern as to how viable they were going to be," she said.

"But I think, over time, that confidence is building. Now there is some [level of] success and some settlements and some positive outcomes in the court and I think that there are more and more funders who are clearly interested in opening up in the market."

Integrated Legal Holdings, which in the past 12 months has acquired Argyle Lawyers and mda lawyers, has announced it plans to continue an aggressive acquisitions strategy that will see the company target 10 to 15 purchases over the next five to 10 years.

Perth-based litigation funder Hillcrest Litigation Service recently announced that its profits were up by 48 per cent, to $1.5 million, in its 2008/09 annual report and said it was investigating the expansion of its office into Sydney and Melbourne.

- Sarah Sharples

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

The predicted shape of Australian class actions
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Jetski
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
Consultation
Oct 23 2017
Lawyers slam rushed consultation for SA repeat offenders bill
The Law Society of South Australia has expressed concern for a proposal to roll out new laws amendin...
IBA
Oct 23 2017
The pursuit of happiness in the law
A panel of legal experts have explored how to define success in the legal profession, and how lawyer...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...