Hardy v Reckitt Benckiser (Australia) Pty Limited

Link copied
Case Copied 9 min read

FEDERAL COURT OF AUSTRALIA

Hardy v Reckitt Benckiser (Australia) Pty Limited [2017] FCA 341

File number: NSD 273 of 2016
Judge: NICHOLAS J
Date of judgment: 31 March 2017
Catchwords: PRACTICE AND PROCEDURE – representative proceeding – where initial trial is yet to take place – where class closure order proposed by respondent is opposed by applicants – whether class closure order should be made – application for class closure order refused
Legislation: Federal Court of Australia Act 1976 s 33ZF(1), Pt IVA
Cases cited:

Jones v Treasury Wine Estates Limited (No 2) [2017] FCA 296

Mobil Oil Australia Pty Ltd v Victoria (2002) 211 CLR 1

P Dawson Nominees Pty Ltd v Brookfield Multiplex Ltd (No 2) [2010] FCA 176

Date of hearing: 30 March 2017
Registry: New South Wales
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Regulator and Consumer Protection
Category: Catchwords
Number of paragraphs: 20
Counsel for the Applicants: Dr P Cashman appears with Mr R White
Solicitor for the Applicants: Bannister Law
Counsel for the Respondent: Mr N Hutley SC appears with Mr D Birch
Solicitor for the Respondent: Allen & Overy

ORDERS

NSD 273 of 2016
BETWEEN:

KEITH GEORGE HARDY

First Applicant

YASMINKA JANG

Second Applicant

AND:

RECKITT BENCKISER (AUSTRALIA) PTY LIMITED

Respondent

JUDGE:

NICHOLAS J

DATE OF ORDER:

31 MARCH 2017

THE COURT ORDERS THAT:

1.The respondent’s interlocutory application filed 10 March 2017 be dismissed with costs.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

NICHOLAS J:

  1. Before me is an interlocutory application filed by the respondent in a representative proceeding commenced under Pt IVA of the Federal Court of Australia Act 1976 (Cth) (“the Act’) seeking what is colloquially known as a “class closure” order under s 33ZF(1) of the Act. A similar application was refused by Jagot J in this proceeding on 25 November 2016. The initial trial is fixed to commence on 1 August 2017 with an estimate of two to three days.

  2. The respondent’s proposed order effectively requires group members to positively indicate whether they wish to advance a claim in the proceeding or participate in a potential settlement.  Under the terms of the respondent’s proposed order they will, in the absence of any such positive indication, be excluded from any settlement and precluded from seeking any relief in the proceeding without the leave of the Court.

  3. The respondent says that it seeks the class closure order to facilitate a productive mediation prior to the determination of the applicants’ claim and the resolution of the common questions following the initial trial.  The applicants oppose the making of any form of class closure order prior to the initial trial. 

  4. The group members are consumers as defined by s 3 of the Australian Consumer Law (“ACL”) who purchased any of the following products in the Nurofen Specific Pain Range (“NSPR”) between 1 January 2011 and 31 December 2015:

    ·Nurofen Migraine Pain ibuprofen lysine 342 mg tablet blister…

CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read Hardy v Reckitt Benckiser (Australia) Pty Limited and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2017] FCA 341
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Hardy and others initiated a representative proceeding against Reckitt Benckiser (Australia) Pty Limited concerning alleged misleading and deceptive conduct under the Australian Consumer Law. The applicants sought damages and other relief for claims that the respondent misled consumers about the efficacy of its Nurofen products. The dispute centred on whether the respondent's marketing and advertising of its products were misleading and whether the applicants had suffered loss or damage as a result.

The legal issues before the Court involved the appropriate circumstances under which a class closure order should be made in a representative proceeding. The respondent proposed a class closure order, arguing that the proceedings should be halted before the initial trial due to the resolution of key issues through confidential settlement negotiations. The applicants opposed the class closure order, contending that there were still significant unresolved issues that warranted the continuation of the representative proceeding.

The Court found that the granting of a class closure order was not appropriate given the stage of the proceedings. The Court emphasised that the decision to make such an order should be guided by the principles of fairness and justice to all parties involved. It was determined that there were still substantial matters to be resolved, and the proposed order would not serve the interests of justice. Consequently, the respondent's interlocutory application was dismissed, and the costs were awarded against the respondent.

The Court ordered that the respondent’s interlocutory application filed on 10 March 2017 be dismissed with costs, as per Rule 39.32 of the Federal Court Rules 2011. This ruling ensures that the representative proceeding will continue, allowing for the resolution of all outstanding issues between the parties.

Orders

Orders of the court

1. The respondent’s interlocutory application filed 10 March 2017 be dismissed with costs.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.