Penalties: don't look back

Following the Full Federal Court's April 2015 decision in Paciocco v Australia and New Zealand Banking Corporation (Paciocco), there is now the potential for the High Court to give some much needed guidance on the application of the laws on penalties.

The initial uncertainty was caused by the High Court's previous decision in Andrews v Australian and New Zealand Banking Corporation. If the plaintiff appeals the Full Federal Court decision in Paciocco, which also involved a class action against the charging of a number of bank fees, the High Court may take the opportunity to clarify this area of law.

Paciocco – first instance

The Federal Court decision in Paciocco involved a representative action on whether certain bank fees were penalties.