Brookfield Multiplex Ltd v International Litigation Funding Partners Pte Ltd

Brookfield Multiplex Ltd appealed against a decision that found their litigation funding arrangement constituted a financial product within the meaning of the Corporations Act 2001 (Cth). The appeal was dismissed by the court. The appeal centred on whether the arrangement constituted a financial product under the Corporations Act, specifically if it constituted a scheme for the provision of financial product services as defined in the Act. The court found that the arrangement did indeed constitute such a scheme. The court reasoned that the arrangement involved the exchange of contractual obligations and resulted in the provision of legal services, absence of exposure to adverse costs orders, and the benefit of contractual rights to participate in the distribution of Resolution Sums. The court held that these benefits were produced by the scheme, and therefore, the arrangement fell within the definition of a financial product scheme under the Corporations Act. The appeal was dismissed, and Brookfield Multiplex Ltd was ordered to pay the costs of the respondents.