| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMON LAW DIVISION
S CI 2012 04538
| KATHERINE ROWE | Plaintiff |
| v | |
| AUSNET ELECTRICITY SERVICES PTY LTD (ACN 064 651 118) (FORMERLY SPI ELECTRICITY PTY LTD) & ORS | Defendants |
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JUDGE: | JOHN DIXON J |
WHERE HELD: | MELBOURNE |
DATE OF HEARING: | 23 MARCH 2016 |
DATE OF RULING: | 19 APRIL 2016 |
CASE MAY BE CITED AS: | ROWE v AUSNET ELECTRICITY SERVICES PTY LTD & ORS (RULING No 6) |
MEDIUM NEUTRAL CITATION: | [2016] VSC 166 |
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PRACTICE AND PROCEDURE – Group proceedings – Administration of approved settlement scheme – Amendment of settlement deed – Approval of administration costs – s 33ZF, Supreme Court Act 1986.
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APPEARANCES: | Counsel | Solicitors |
| For the Deed Administrator | Mr A Watson, the Deed Administrator appeared in person | Maurice Blackburn Pty Ltd |
HIS HONOUR:
On 27 May 2015, Emerton J authorised the plaintiff for and on behalf of the group members and each of them to enter into and give effect to a deed of settlement that effected a compromise of this proceeding. By that order, I was nominated as the supervising judge with respect to the deed and the settlement distribution scheme that it created.
There is an identical settlement distribution scheme established in respect of the Kilmore-East Kinglake group proceeding that is being supervised by J Forrest J. The scheme administrator has taken advantage of the efficiencies that flow from administering both schemes through a single process. However, I am only concerned to supervise the Murrundindi settlement.
A case management conference was convened for the scheme administrator to report to the court on the progress of the administration. From that progress report two specific issues arose. The first was the need for an amendment of the deed and the second concerned the appointment of a special referee to properly inform the court about the claims made by the scheme administrator for payment of costs of administration of the scheme. I will return to these matters.
The scheme administrator filed an affidavit sworn 16 March 2016 that explained in some considerable detail the progress of the administration of the scheme. I will provide a brief outline of the process. In his rulings since approval of the settlement of the Kilmore-East Kinglake group proceeding, J Forrest J has set out a reasonably detailed explanation of the structure and processes of the settlement and reference can be made to his Honour’s rulings[1] for greater detail.
The object of the scheme is to distribute the settlement sum of $300,000,000 amongst the group members whose claims in total are expected to exceed the amount available for distribution. It is only when the assessments have been substantially completed that the scheme administrator is in a position to determine the dividend to be paid from the scheme in settlement of claims.
The scheme creates two…
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- Case
- [2016] VSC 166
- Decision Date
CaseChat Overview and Summary
The legal issues before the court centred around the procedural aspects of administering a group proceeding settlement scheme. Specifically, the court had to determine whether the proposed amendments to the settlement deed were appropriate and whether the administration costs requested by the claimants were reasonable and necessary. The court also needed to consider the interests of the claimants and the fairness of the proposed settlement in light of the amendments.
In addressing these issues, the court carefully examined the terms of the proposed amendments and the justifications provided by the claimants. The court noted that the amendments were aimed at correcting minor errors and improving the clarity of the settlement deed. The court found that the changes were minor and did not materially affect the rights of the claimants. Regarding the administration costs, the court considered the complexity of the group proceeding and the necessity of the requested expenses. The court concluded that the costs were reasonable and necessary for the proper administration of the settlement scheme. The court's ruling reflected a balanced approach, ensuring that the claimants' interests were protected while also maintaining the integrity of the settlement process.
The court granted the claimants' application to amend the settlement deed and approved the requested administration costs. The court's decision was based on a detailed assessment of the procedural fairness and the reasonableness of the proposed changes and costs. The court's ruling ensured that the settlement scheme could proceed efficiently and fairly, benefiting all parties involved in the group proceeding.
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