Ewok Pty Ltd as trustee for the E & E Magee Superannuation Fund v Wellard Limited

Ewok Pty Ltd as trustee for the E & E Magee Superannuation Fund applied to the Federal Court for approval of a settlement with Wellard Limited. The representative proceeding involved a "closed class" of group members who had entered into funding agreements with a litigation funder. The applicant sought approval for the settlement, including a distribution scheme involving deductions from the settlement sum, and suppression orders to protect certain information. The court had to decide whether the settlement was fair and reasonable, whether the proposed deductions were justified, and whether suppression orders were necessary to prevent prejudice to the administration of justice.

The court considered the evidence, including affidavits and opinions from counsel and experts, which addressed the complexity of the litigation, the class's reaction to the settlement, and the risks involved. The court also noted that all deductions, except for certain fees and reimbursements, were agreed upon by the class members through their funding agreements. The applicant argued that the settlement was fair and reasonable, given the risks and costs involved. The court approved the settlement, noting that the deductions were contractually agreed upon and the suppression orders were necessary to protect sensitive information.

The court approved the settlement and the distribution scheme, which included deductions for legal costs, insurance premiums, and other expenses. The court also granted limited suppression orders to protect the identities of the group members and certain financial details. The proceeding was dismissed with no order as to costs, and all previous orders regarding security and costs were vacated.

The final orders included the approval of the settlement and distribution scheme, the appointment of an administrator, and the imposition of confidentiality restrictions on certain documents. The applicant and the litigation funder were required to file redacted versions of the confidential documents within three business days.