Clarke v Sandhurst Trustees Limited (No 2)

The case of Clarke v Sandhurst Trustees Limited (No 2) was heard in the Federal Court of Australia. The dispute involved the approval of a settlement in a representative proceeding. The primary issue before the court was whether the proposed settlement was fair and reasonable in the interests of the group members, considering various deductions from the settlement sum.

The court had to determine if the proposed settlement was fair and reasonable, despite the deductions from the settlement sum being individually fair and reasonable but collectively causing a lower return to the group members. The court considered the prevailing market parameters for the funding fee and the complexity and cost of the litigation, given the relatively modest damages sought to be recovered. The court also took into account the evidence provided by Ms Jones, who stated that it is not unusual for group members to receive less than half the proceeds of a settlement. However, the court disagreed with this statement, asserting that such cases should not be considered 'not unusual' in the context of representative proceedings.

After considering all the factors, the court concluded that the proposed settlement was fair and reasonable in the interests of the group members. The court approved the settlement on the terms set out in the Settlement Deed and the Settlement Scheme, including the payment of the Indemnity Fee, Plaintiffs' Costs, and Administration Costs. The court also appointed Shine lawyers as the administrator of the Settlement Scheme and dismissed the amended originating application and the further amended statement of claim.

In summary, the court approved the proposed settlement in Clarke v Sandhurst Trustees Limited (No 2) after considering the fairness of the settlement sum, legal fees, and funding fee. The court found the settlement to be fair and reasonable in the interests of the group members, despite the relatively low return to them. The court also made orders regarding the administration of the Settlement Scheme, costs, and confidentiality of certain exhibits.