Davaria Pty Limited v 7-Eleven Stores Pty Ltd

In Davaria Pty Limited v 7-Eleven Stores Pty Ltd, the Federal Court of Australia was asked to approve the discontinuance of claims against ANZ Bank (ANZ) in two class actions brought by Davaria Pty Limited and Davaria Investments Pty Limited (collectively, the applicants) against 7-Eleven Stores Pty Ltd and ANZ Bank. The applicants sought approval under section 33V of the Federal Court of Australia Act 1976 to discontinue the claims against ANZ, which had been settled by way of deeds of settlement. The applicants also sought to extend the time for filing opt-out notices by certain group members who had not yet filed their notices before the originally prescribed deadline.

The primary legal issue before the Court was whether the proposed discontinuance of the claims against ANZ was fair and reasonable, and thus warranted approval under section 33V of the Federal Court of Australia Act. The Court considered the interests of the group members who may be affected by the discontinuance, and whether the proposed discontinuance had been undertaken in the interests of the group members as a whole, and not just in the interests of the applicants and ANZ. The Court also considered the impact of the proposed discontinuance on the opt-out rights of group members.

In approving the discontinuance, the Court found that the proposed discontinuance was fair and reasonable. The Court noted that the applicants had met their onus of showing that the proposed discontinuance was in the interests of all group members, and that the discontinuance would not adversely affect the rights of group members who had not opted out of the proceedings. The Court also found that the extension of the time for filing opt-out notices by certain group members was necessary to prevent prejudice to the proper administration of justice.

The Court approved the discontinuance of the claims against ANZ, and extended the time for filing opt-out notices by certain group members. The Court also made orders regarding the distribution of security for costs, the service of further amended interlocutory applications, and the costs of the proceedings. The final orders included the approval of the discontinuance of the claims against ANZ, the extension of the time for filing opt-out notices by certain group members, and the reinstatement of two group members who had previously opted out of the proceedings.