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ARTICLE · 29 APRIL 2026

ATE Insurance Deductions From Class Action Settlements Are “not That Simple”

Barry Nilsson
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The Federal Court of Australia considered whether it was fair and reasonable to deduct the premiums associated with after the event (ATE) insurance taken out by the applicants' solicitors, from the funds to be paid in settlement of a class action.

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James Morse
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Olivia Puglisi
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The Federal Court of Australia considered whether it was fair and reasonable to deduct the premiums associated with after the event (ATE) insurance taken out by the applicants' solicitors, from the funds to be paid in settlement of a class action.

In issue

  • Whether the Court should approve the deduction of $1.76 million from the funds to be paid in settlement of a representative proceeding (i.e. a class action), reflecting premiums associated with after the event (ATE) insurance taken out by the applicants' solicitors.

The background

The applicants commenced a representative proceeding (i.e. a class action) against certain entities, regarding interest rates paid on certain investment options in pension and superannuation products, along with fees charged to members of certain funds. The proceedings resolved prior to trial, for $50 million 'all in'.

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