Dawson v Insurance Australia Ltd

In the matter of Dawson v Insurance Australia Ltd, the dispute revolves around the appropriateness and percentage of a group costs order (GCO) in the context of group proceedings. The case was heard in the Supreme Court of Victoria. The plaintiffs sought a GCO to cover their costs incurred in the litigation, arguing that the percentage proposed by the defendant, Insurance Australia Ltd, was inadequate to ensure justice in the proceedings.

The court was tasked with determining whether a GCO was appropriate in this case and, if so, what percentage should be applied. The plaintiffs argued for a 33 per cent GCO, while the defendant proposed a lower percentage. The court had to consider the principles set out in the Supreme Court Act 1986 (Vic) s 33ZDA, which provides the framework for determining the appropriateness and percentage of a GCO.

In its reasoning, the court noted that while the plaintiffs' proposed percentage of 33 per cent was considered, it found that a lower percentage of 27.5 per cent would be more appropriate. The court emphasised that specifying a lower percentage now would not preclude the possibility of increasing the percentage later if necessary. It also highlighted the safeguard mechanism provided by s33ZDA(3) of the Act, which allows for adjustments if subsequent events indicate the initial percentage is insufficient.

Consequently, the court granted the application for a GCO but specified a percentage of 27.5 per cent instead of the 33 per cent sought by the plaintiffs. This decision ensures that justice is done in the proceeding while maintaining flexibility for future adjustments if needed.