In brief - Litigation funders will be weighing up the
consequences of a recent Federal Court decision requiring them to
provide security for costs in industrial relations class
actions.
Lee J handed down a landmark ruling in the case of
Turner v Tesa Mining requiring the litigation funder,
Augusta Ventures Limited (Funder) to provide a
total of $3.1 million in security for costs.
It is the first decision in Australia in which security for
costs has been ordered against a non-party litigation funder.
The Court's ruling means that the 'no costs'
jurisdiction for matters arising under the Fair Work Act
2009 (FWA), will not shield litigation
funders from the obligation to pay costs if the litigation is
unsuccessful, and further, to give security for those potential
adverse costs.
