Class Action Against Government Settles—Plaintiff Pays Defendant's Costs

Key Points

• Class actions against governments and public authorities following natural disasters and other incidents are becoming increasingly frequent in Australia.
• In 2010, a class action was brought against the State of Victoria in relation to claims following an outbreak of an abalone disease along the Victorian coast in 2006. The class action was unsuccessful at trial and the plaintiff appealed to the Victorian Court of Appeal. Prior to the appeal being heard, the class action was settled on the basis that the plaintiff would pay $2,570,000 to the State in relation to its costs.
• The Victorian Supreme Court's judgment approving the settlement provides guidance on the issues that need to be addressed where the plaintiff is to pay the defendant's costs. In particular, where a settlement follows a loss by the plaintiff at trial, the court has to pay particular regard to the tension that can arise between the interests of the litigation funder and that of the