Quirk v Suncorp Portfolio Services Ltd in its capacity as trustee for the Suncorp Master Trust (No 2)

The case of Quirk v Suncorp Portfolio Services Ltd in its capacity as trustee for the Suncorp Master Trust (No 2) involved a representative action initiated by the plaintiff, Quirk, against Suncorp Portfolio Services Ltd, which acted as the trustee for the Suncorp Master Trust. The plaintiff alleged that the defendant had improperly used fees charged to trust beneficiaries to pay commissions. The matter was settled, and the court was tasked with approving the settlement and determining the distribution of the settlement funds among the group members.

The primary legal issue before the court was whether the settlement was fair and reasonable, particularly in light of the modest individual claims and the substantial costs associated with the proceedings. The court had to consider whether the settlement reflected the risks and benefits of proceeding with individual litigation and whether the distribution of the settlement funds was appropriate.

The court found that the settlement was fair and reasonable. It determined that the compromise reflected the risks of proceeding with individual claims, given the modest amounts at stake for each group member. The court also noted that approximately 40% of the settlement would be available for distribution to the group members after the deduction of the funder’s costs, commission, and other expenses. The court approved the settlement and directed the distribution of the settlement funds accordingly.