Modtech Engineering Pty Ltd v GPT Management Holdings Ltd

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FEDERAL COURT OF AUSTRALIA

Modtech Engineering Pty Limited v GPT Management Holdings Limited

[2013] FCA 626

Citation: Modtech Engineering Pty Limited v GPT Management Holdings Limited [2013] FCA 626
Parties: MODTECH ENGINEERING PTY LIMITED (ACN 006 993 022) v GPT MANAGEMENT HOLDINGS LIMITED (ACN 113 510 188) and GPT RE LIMITED (ACN 107 426 504)
File number: VID 1408 of 2011
Judge: GORDON J
Date of judgment: 21 June 2013
Catchwords: PRACTICE AND PROCEDURE – representative proceeding under Federal Court of Australia Act 1976 (Cth) ss 33V and 33ZF – Court approval of settlement – fairness and reasonableness of terms of settlement – global settlement – assessment of reasonableness of legal fees – assessment of reasonableness of funding commission uplift – public interest in facilitation of fair and reasonable settlement
Legislation: Federal Court of Australia Act 1976 (Cth)
Federal Court Rules 2011 (Cth)
Cases cited:

AGC (Advances) Ltd v West; AGC (Advances) Ltd v Cranston (1984) 5 NSWLR 301
Australian Competition and Consumer Commission v Chats House Investments Pty Ltd (1996) 71 FCR 250
Brisbane Broncos Leagues Club Ltd v Alleasing Finance Australia Pty Limited (No 2) [2012] FCA 1112
Darwalla Milling Co Pty Ltd v F Hoffman-La Roche Limited (No 2) (2006) 236 ALR 322
Dorajay Pty Ltd v Aristocrat Leisure Limited [2009] FCA 19
Hadchiti v Nufarm Limited [2012] FCA 1524
Haslam v Money For Living (Aust) Pty Ltd (Administrators Appointed) [2007] FCA 897
Hobbs Anderson Investments Pty Limited v Oz Minerals Limited [2011] FCA 801
Johnson Tiles Pty Ltd v Esso Australia Ltd (1999) 94 FCR 167
Kirby v Centro Properties Ltd (No 6) [2012] FCA 650
Lopez v Star World Enterprises Pty Ltd [1999] FCA 104
Madgwick v Kelly [2013] FCAFC 61
Milfull v Terranora Lakes Country Club Ltd [2006] FCA 801
Pathway Investments Pty Ltd v National Australia Bank Ltd (No 3) [2012] VSC 625
Pharm-a-Care Laboratories Pty Ltd v Commonwealth of Australia (No 6) [2011] FCA 277
Re Korda; in the matter of Stockford Ltd (2004) 140 FCR 424
Re Medforce Healthcare Services Ltd (In Liq) [2001] 3 NZLR 145
Redfern v Mineral Engineers Pty Ltd [1987] VR 518
Richards v Macquarie Bank Limited (No 4) [2013] FCA 438
Taylor v Telstra CorporationLtd [2007] FCA 2008
Venetian Nominees v Conlan (1998) 20 WAR 96
Williams v FAI Home Security Pty Ltd (No 4) (2000) 180 ALR 459

Dal Pont GE, Law of Costs (LexisNexis Butterworths, 2003)
Quick R, Garnsworthy D and Harris E, Quick on Costs (Thomson Reuters, subscription service)

Date of hearing: 20 June 2013
Date of last submissions: 20 June 2013
Place: Melbourne
Division: GENERAL DIVISION
Category: Catchwords
Number of paragraphs: 74
Counsel for the Applicant: Dr M Collins SC and Mr A Nash
Solicitor for the Applicant: Slater & Gordon
Counsel for the Respondents: Mr C Moore SC
Solicitor for the Respondents: Herbert Smith Freehills

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 1408 of 2011

BETWEEN:

MODTECH ENGINEERING PTY LIMITED (ACN 006 993 022)
Applicant

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Details
Case
[2013] FCA 626
Decision Date

CaseChat Overview and Summary

Modtech Engineering Pty Ltd brought a representative proceeding against GPT Management Holdings Ltd in the Federal Court of Australia, seeking approval of a settlement. The primary issue before the Court was the fairness and reasonableness of the terms of the settlement, particularly in relation to the legal fees and funding commission uplift. The Court had to determine whether the settlement was fair and reasonable and whether it should be approved.

The Court examined the evidence provided by the parties and considered the public interest in facilitating fair and reasonable settlements. The Court found that the Settlement Distribution Scheme needed to be amended to address the change in the way in which the Applicant’s Expense Claim was to be addressed. The Court concluded that the parties should file a minute of proposed orders together with an amended Settlement Distribution Scheme by 4:00pm on 25 June 2013, to give effect to the Court’s reasons for judgment. The Court also directed that the Registrar(s) should provide the necessary reports to the Court by no later than 26 July 2013.

The Court made confidentiality orders under s 37AF of the Federal Court of Australia Act 1976 (Cth) in relation to identified affidavits and directed that certain evidence be kept confidential on the Court file and not disclosed to any other parties or persons without the express consent of the parties or order of the Court. The Court noted that the entry of orders was dealt with in Rule 39.32 of the Federal Court Rules 2011 (Cth).

Orders

Orders of the court

1. Subject to further order, pursuant to s 37AF of the Federal Court of Australia Act 1976 (Cth) (the Act), and on the ground that the order is necessary to prevent prejudice to the proper administration of justice, the following evidence is to remain confidential on the Court file and is not to be disclosed to any other parties or persons without the express consent of the parties or order of this Court:

(a) the Affidavit of Benjamin James Yang Phi affirmed on 13 June 2013 and its annexures;

(b) the Affidavit of Benjamin James Yang Phi affirmed on 19 June 2013 and its annexures; and

(c) paragraph 8 of the Affidavit of Benjamin James Yang Phi affirmed on 19 June 2013.

2. By 4:00pm on 25 June 2013, the parties file a minute of proposed orders together with an amended Settlement Distribution Scheme to give effect to these reasons for judgment.

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

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

The Settlement Distribution Scheme will need to be amended to address the change in the way in which the Applicant’s Expense Claim is to be addressed. Once it is amended, it can be provided to the Court and be approved by it.CONCLUSION For those reasons, I will make confidentiality orders under s 37AF of the Act in relation to identified affidavits and direct that, by 4:00pm on 25 June 2013, the parties file a minute of proposed orders, together with an amended Settlement Distribution Scheme, which gives effect to these reasons for judgment. Those orders should reflect the fact that the Registrar(s) should provide the necessary reports to the Court by no later than 26 July 2013.

Ratio Decidendi

Legal Principle Established

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