High Court Of Australia Determines Extent To Which Class Members Are Bound By Class Action Judgment

Key Points

• The High Court of Australia in Timbercorp Finance Pty Ltd (in liq) v Collins [2016] HCA 44 determined that a class member in an unsuccessful class action, who later raised individual defences against a claim from a defendant to the original class action, was not precluded from raising them by reason of Anshun estoppel, nor were the defences an abuse of process.
• The statutory class action regimes in Australia are structured so that a representative party represents class members only with respect to the claim that is the subject of the class action—the common issues—but not with respect to their individual claims.
• The decision highlights the importance of framing the common questions in the class action, as they will determine the scope and extent of any claims that may survive the determination of a class action proceeding.