Pearson v State of Queensland

Pearson v State of Queensland [2017] FCA 1065 was a proceeding brought by Hans Pearson on behalf of Aboriginal and Torres Strait Islander persons who were subject to control legislation in Queensland. The proceeding sought compensation for the unlawful withholding of wages. The proceeding was brought as a representative proceeding under Part 3A of the Federal Court of Australia Act 1976 (Cth). The court was required to decide whether the proceeding should proceed on an open or closed class basis, and whether a common fund order should be made, and if so, what the funding commission rate should be. The court found that the proceeding should proceed on an open class basis, allowing any Aboriginal or Torres Strait Islander person who was subject to the control legislation to join the proceeding. The court also made a common fund order, allowing the funding company to be reimbursed from the settlement or judgment sum, but set the funding commission rate at 20% or such lower percentage as the court considers reasonable at the time. The court declined to make a common fund order that set the funding commission rate at 20% because it wanted more complete information before making such an order. The court also ordered that notice of the common fund application be given to class members before making such an order.

The orders made by the court allowed the proceeding to proceed on an open class basis, which would enable finality to be brought to the “Stolen Wages” issue in one proceeding rather than through piecemeal wage reparation schemes. The court also made a common fund order, allowing the funding company to be reimbursed from the settlement or judgment sum, but set the funding commission rate at 20% or such lower percentage as the court considers reasonable at the time. The court declined to make a common fund order that set the funding commission rate at 20% because it wanted more complete information before making such an order. The court also ordered that notice of the common fund application be given to class members before making such an order. These orders provided for a funding commission rate of 20% or such lower percentage as the Court considers reasonable at that time. The funding commission rate will be approved at a later point when the Court has more complete information in that regard.