Sherwood v Commonwealth Bank of Australia (No 5)

In the matter of Sherwood v Commonwealth Bank of Australia (No 5), the Federal Court of Australia considered an application for approval of a proposed settlement deed and settlement scheme. The applicants, represented by a class action, sought to resolve a dispute with the Commonwealth Bank of Australia. The central issues before the Court involved whether the settlement reached was fair and reasonable for the group members, if any individuals or entities were improperly excluded from the settlement terms, and if the costs associated with the settlement were justifiable.

The Court carefully reviewed the evidence and submissions provided by the parties, including the affidavits of Mr Levitt, Mr Mazzeo, and Mr Perkins, to determine if the costs incurred in the initial separate claims were beneficial to the applicants in the representative proceeding. It was concluded that the 25% apportionment of $146,156.19 should be allocated to Dr Oliver and Dr Irving as part of the Group Members’ contributions. The Court found that the terms of the Deed, including the settlement sum, the settlement scheme, and the costs claimed by the applicants, were fair and reasonable. Consequently, the Court approved the Deed and the settlement, and made orders as requested by the applicants.

The orders included granting leave for the filing of a ninth further amended statement of claim, approving the settlement on the terms set out in the Deed of Settlement, authorizing the applicants to act on behalf of certain group members, and requiring specific releases from individuals or entities associated with Settling Group Members before compensation could be paid. Additionally, the Court mandated timelines for the completion of settlement-related tasks and imposed confidentiality on certain exhibits to prevent prejudice to the administration of justice. The whole proceeding was dismissed with no order as to costs, and previously made orders relating to costs were vacated.