Australian Federal Court Reforms Class Actions Settlement Practice

A number of Federal Court of Australia judgments in the first half of 2018 have adopted or raised reforms to the mandatory approval process for class action settlements. The reforms mean that the class action settlement process is in a state of flux. While predominantly a concern for applicants, their lawyers, and funders, the process also impacts respondents who are seeking finality and wish to avoid the uncertainty and cost of settlements being refused or challenged.

Four recent decisions of the Federal Court of Australia have adopted or raised law reforms that are resulting in significant changes to the mandatory approval process for class action settlements required under Part IVA of the Federal Court of Australia Act 1976 (Cth) ("FCAA"). The reform topics are as follows: