Francis v Powercor Australia Ltd

In the matter of Francis v Powercor Australia Ltd, the Victorian Supreme Court considered the costs of a representative proceeding and whether the costs claimed were reasonable and proportionately incurred. The case was managed in conjunction with another proceeding, Lenehan v Powercor Australia Ltd. The costs in question arose from the administration of a settlement distribution scheme, where the settlement pool was distributed between group members proportionally according to their assessed losses.

The central legal issue was whether the costs claimed by Maddens, the lawyers representing the group members, were reasonable and proportionate. The court had to consider whether the costs incurred by Maddens were fair and whether the costs cap agreed upon by Maddens and the plaintiff was appropriate. The court also had to decide if the costs claimed were proportionate to the benefits obtained by the group members.

The court reviewed the terms of the costs agreements and the cap agreed upon by Maddens and the plaintiff. The court appointed Ms Catherine Dealehr, an expert in costs law, to assess the reasonableness of the costs claimed. The court found that it was fair and reasonable for the costs to be shared among the group members and that the costs cap of $2,250,000 was appropriate. The court determined that the quantum of the costs determined to be reasonable and proportionate was at least $2,250,000.

The court ordered that the costs of the proceeding, including the administration of the settlement distribution scheme, were reasonable and proportionate. The court approved the costs cap of $2,250,000 and ordered that the settlement pool be distributed between group members pro-rata, calculated by reference to the respective value of each group member’s assessed loss as a proportion of the settlement pool.