Lay v Nuix Ltd

Case [2022] VSC 479


IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMERCIAL COURT

GROUP PROCEEDINGS LIST

S ECI 2021 04360

WILLIAM LAY Plaintiff
v
NUIX LIMITED (ACN 117 140 235) Defendant

S ECI 2021 04391

DANIEL JOSEPH BATCHELOR Plaintiff
v
NUIX LIMITED (ACN 117 140 235) Defendants
(& Ors according to the Schedule attached)

S ECI 2022 00735

STELLA STEFANA BAHTIYAR Plaintiff
v
NUIX LIMITED (ACN 117 140 235) Defendants
(& Ors according to the Schedule attached)

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JUDGE:

Nichols J

WHERE HELD:

Melbourne

DATE OF HEARING:

16 June 2022; further mention on 18 July 2022; further submissions filed on 5, 15 and 20 July 2022

DATE OF RULING:

23 August 2022

CASE MAY BE CITED AS:

Lay v Nuix Ltd; Batchelor v Nuix Ltd; Bahtiyar v Nuix Ltd

MEDIUM NEUTRAL CITATION:

[2022] VSC 479

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PRACTICE AND PROCEDURE — Group proceedings — Multiplicity of proceedings — Competing carriage motions — Where plaintiffs in two of the proceedings jointly seek consolidation, joint representation and stay of the other proceeding — Whether consolidation in the best interests of group members — Whether joint representation in the best interests of group members — Supreme Court Act 1986 (Vic) s 33ZF — Wigmans v AMP Ltd (2021) 270 CLR 623, Perera v GetSwift Ltd (2018) 263 FCR 92, Klemweb Nominees Pty Ltd v BHP Group Ltd (2019) 369 ALR 583, Fuller v Allianz Australia Insurance Ltd (2021) 65 VR 78 — Consolidation granted — Stay granted — One firm to be appointed as solicitors on the record.

GROUP PROCEEDINGS — Costs — Application for a Group Costs Order — Costs to be calculated as a percentage of the amount of any award or settlement recovered — Whether proper evidentiary basis to make the proposed GCO — Judicial discretion in open-textured legislation — Principles to be applied — Supreme Court Act 1986 (Vic) s 33ZDA — Allen v G8 Education Ltd [2022] VSC 32, Fox v Westpac; Crawford v ANZ [2021] VSC 573, Boganv The Estate of Peter John Smedley (Deceased) [2022] VSC 201 — Application dismissed.

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APPEARANCES:

Counsel Solicitors
For the Plaintiff in the Lay Proceeding Mr R May

Shine Lawyers

For the Plaintiff in the Batchelor Proceeding Mr LWL Armstrong QC
Mr M Guo
Phi Finney McDonald
For the Plaintiff in the Bahtiyar Proceeding Mr WAD Edwards
Mr E Batrouney
Banton Group
For Nuix

Mr M Darke SC

Mr J Entwisle

Gilbert + Tobin
For Macquarie Capital and Macquarie Group Limited Mr R Craig QC
Ms J Findlay
Herbert Smith Freehills
For the Fourth, Fifth and Sixth Defendants in the Bahtiyar Proceeding Mr S Marks QC
Ms M Szydzik
Jones Day
For the Seventh Defendant in the Bahtiyar Proceeding

Dr C Parkinson SC

Corrs Chambers Westgarth
For the Eight Defendant in the Bahtiyar Proceeding

Ms N Gollan

Watson Mangioni Lawyers
For the Ninth Defendant in the Bahtiyar Proceeding Mr G Rich SC
Ms A Campbell
Arnold Bloch Leibler

TABLE OF CONTENTS

Part A: Introduction and background............................................................................................…

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Details
AGLC
Lay v Nuix Ltd; Batchelor v Nuix Ltd; Bahtiyar v Nuix Ltd [2022] VSC 479
Case
[2022] VSC 479
Decision Date

CaseChat Overview and Summary

The parties in Lay v Nuix Ltd were engaged in a dispute concerning two separate group proceedings. The plaintiffs in each proceeding sought various forms of relief against Nuix Ltd. The case came before the Supreme Court of Victoria, which was required to decide on two primary issues. Firstly, whether it was in the best interests of the group members to consolidate the two proceedings, and secondly, whether it was appropriate to grant a stay of the second proceeding and appoint a single firm of solicitors to represent all plaintiffs. The court considered relevant statutory provisions and precedents, including the Supreme Court Act 1986 (Vic) and cases such as Wigmans v AMP Ltd, Perera v GetSwift Ltd, Klemweb Nominees Pty Ltd v BHP Group Ltd, and Fuller v Allianz Australia Ltd. The court found that consolidation and joint representation would indeed be in the best interests of the group members, and thus granted the consolidation and stay, while also appointing one firm as solicitors on the record.

In addition to these issues, the plaintiffs sought a Group Costs Order (GCO) to determine the costs as a percentage of any award or settlement. The court examined whether there was a proper evidentiary basis to make such an order and considered the judicial discretion available under the Supreme Court Act 1986 (Vic). The court referred to Allen v G8 Education Ltd, Fox v Westpac; Crawford v ANZ, and Bogan v The Estate of Peter John Smedley (Deceased) in its analysis. Ultimately, the court concluded that the plaintiffs had not provided sufficient evidence to support the proposed GCO and dismissed the application. This decision highlights the importance of a robust evidentiary foundation when seeking such orders and underscores the broad discretion held by the court in interpreting open-textured legislation.

In summary, the court granted the consolidation and stay of the second proceeding, appointed a single firm of solicitors to represent all plaintiffs, and dismissed the application for a GCO. These outcomes reflect the court's balanced approach to managing group proceedings, ensuring both efficiency and fairness for the parties involved.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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