Takata Air Bag – Class closure and registration

In a recent case before the Federal Court, the representatives of a class of persons affected by defective Takata airbags sought to close a representative proceeding and register a settlement. The class representatives were seeking to close the proceeding and register a settlement with a soft closure, allowing for the possibility of additional persons to join the proceeding in the future. The respondent, Takata Corporation, opposed the application on the grounds that the proposed settlement was not fair, reasonable, and in the best interests of the class members.

The court was required to determine whether the settlement was fair, reasonable, and in the best interests of the class members, and whether a soft closure was appropriate in the circumstances. The court noted that the settlement provided for a significant compensation package for the class members, including payments for economic loss, non-economic loss, and legal costs. The court also noted that the settlement had been approved by an independent expert, and that there had been extensive consultation with class members. The court found that the settlement was fair, reasonable, and in the best interests of the class members, and that a soft closure was appropriate in the circumstances.

The court further found that a soft closure was appropriate in the circumstances because it allowed for the possibility of additional persons to join the proceeding in the future, which was necessary given the ongoing nature of the Takata airbag recalls. The court held that a soft closure was consistent with the principles of representative proceedings, which aim to provide an efficient and effective means of resolving claims on behalf of large groups of persons with similar interests. The court granted the application to close the proceeding and register the settlement with a soft closure.

The court ordered that the proceeding be closed and the settlement be registered, with a soft closure effective for a period of two years from the date of the judgment. The court also ordered that notice of the settlement and the soft closure be given to all potential class members, and that any potential class members who wished to join the proceeding be allowed to do so within the two-year period. The court further ordered that the costs of the proceeding be paid by the respondent, Takata Corporation.