Andrews v Australia and New Zealand Banking Group Limited

The case of Andrews v Australia and New Zealand Banking Group Limited involves a class action proceeding initiated against ANZ by several group members, represented by Maurice Blackburn Lawyers, to seek compensation for charges made by ANZ that were deemed to be penalty fees. The Federal Court was tasked with determining whether to approve the proposed settlement terms, which included deductions for legal costs and litigation funding. The central legal issues involved whether the settlement was fair and reasonable, and whether the proposed deductions were justifiable. The Court found that the settlement was fair and reasonable, considering the logistical challenges of more precise allocations and the balance between the costs of such precision and the benefits of a more exact distribution.

The Court reasoned that given the small sums involved in individual claims and the time spent by the applicants on behalf of the group members, the deduction of legal costs was appropriate. Additionally, the Court considered that administration costs and the reimbursement of litigation funding costs were necessary and reasonable deductions. Despite some objections from a small number of group members, the Court found that the overall settlement was fair, as it provided a practical and cost-effective resolution of the claims. The Court concluded that the settlement met the criteria for approval under the Federal Court of Australia Act.

The final orders of the Court approved the settlement on the terms set out in the Deed of Settlement and Release and the proposed Settlement Distribution Scheme. The Court also appointed Maurice Blackburn as the administrator of the settlement distribution and granted them the necessary powers and immunities. Additionally, the Court ordered that certain material in the affidavits not be published without leave of the Court until 31 December 2020. The orders effectively dismissed all remaining claims in the proceeding, vacated all prior costs orders, and provided that the persons affected by the orders include the applicants, the respondent, and all group members in the proceeding who have not opted out.