Hunt Leather Pty Ltd v Transport for NSW (No 4)

The case of Hunt Leather Pty Ltd v Transport for NSW (No 4) involved the plaintiffs, who had entered into a litigation funding agreement with a funder, seeking damages against the defendant, Transport for New South Wales. The plaintiffs sought to recover the funder's commission as a head of damages. The dispute was heard by the Federal Court of Australia.

The legal issues before the court centred on whether the plaintiffs were entitled to claim the funder's commission as part of their damages. The plaintiffs argued that the funder's commission was a direct consequence of the litigation and therefore should be recoverable as damages. The defendant, on the other hand, contended that the funder's commission was not a loss or damage suffered by the plaintiffs and thus should not be recoverable.

The court examined the nature of litigation funding agreements and the role of the funder in the litigation process. It held that the funder's commission was not a loss or damage suffered by the plaintiffs but rather a fee for the funder's service in financing the litigation. The court emphasised that the funder's commission was not a direct consequence of the defendant's wrongdoing but rather a cost incurred by the funder in providing financial support to the plaintiffs. Consequently, the plaintiffs were not entitled to claim the funder's commission as part of their damages.

The court's decision clarified the legal position regarding the recoverability of litigation funder's commission in Australian courts. The plaintiffs were not permitted to claim the funder's commission as a head of damages in their litigation against the defendant.