Davaria Pty Limited v 7-Eleven Stores Pty Ltd (No 11)

In the Federal Court, Davaria Pty Limited and Kaizenworld Pty Limited, on behalf of a class of group members, sought approval of a settlement with 7-Eleven Stores Pty Ltd. The applicants alleged that 7-Eleven engaged in unconscionable conduct and breached the Australian Consumer Law by not paying certain rebates and charges to the applicants and other franchisees. The applicants sought approval of a settlement under the representative proceedings provisions in Part 3 Division 3ZF of the Federal Court of Australia Act 1976 (Cth). The key legal issues before the Court were whether the proposed settlement was fair and reasonable, and whether the role of the contradictor had been adequately considered. The Court found that the settlement was fair and reasonable both as between the applicants and the group members, and the respondents. The Court also found that the contradictor had been given an opportunity to make submissions and that their role had been adequately considered. The Court granted approval of the settlement under section 33V(1) of the FCA Act and adjourned the hearing for further submissions in relation to approval under section 33V(2). The Court ordered that the settlement be approved on the terms set out in the Class Action Settlement Deed and the Settlement Scheme. The Court also appointed Steven Nicols as the Administrator of the Settlement Scheme, ordered that 7-Eleven pay the Settlement Sum to a trust account, and made various orders in relation to costs, security for costs, and confidentiality.