Haswell v Commonwealth of Australia (No 3)

Haswell and others brought a class action against the Commonwealth of Australia on behalf of group members who owned land in or around seven Royal Australian Air Force bases throughout the Commonwealth. The land was contaminated as a result of the Commonwealth’s use of per-fluoroalkyl and poly-fluoroalkyl substances. The Federal Court was asked to approve the proposed settlement of the class action under section 33V of the Federal Court of Australia Act 1976 (Cth). The central legal issue was whether the settlement was fair and reasonable for the group members. The court had to consider the confidential opinion of counsel, the terms of the settlement, and whether the settlement adequately protected the interests of the group members.

The court examined the confidential opinion and the settlement documents in detail. The opinion concluded that the settlement was fair and reasonable, taking into account the risks, costs, and benefits of proceeding with litigation versus settling. The settlement provided a certain quantum of compensation now, rather than the uncertainty of a potentially prolonged legal battle. The court found that the settlement terms were consistent with other similar class actions and thus approved the settlement. The court also approved the ancillary orders, including the appointment of administrators and independent counsel, deductions from the settlement sum, and consequential orders for dismissal and costs.

The court approved the settlement of the proceeding and made several consequential orders. These included dismissing the proceeding with no order as to costs once the administration was complete, vacating previous costs orders, and releasing security. The court also granted leave to one group member to apply to opt-out of the proceeding and ordered that certain confidential material remain confidential for up to 10 years. The court further provided for group members to inspect the confidential opinion under strict conditions to prevent disclosure.