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ARTICLE · 16 JUNE 2022

Re-opening Of Class Closure In Federal Class Actions

Herbert Smith Freehills Kramer LLP
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In 2020, two decisions of the NSW Court of Appeal created considerable doubt on the availability of class closure orders in class actions filed in the Federal Court: see article here.

AustraliaLitigation, Mediation & Arbitration
Jason Betts
Jason Betts
Christine Tran
Christine Tran
Aoife Xuereb
Aoife Xuereb

In 2020, two decisions of the NSW Court of Appeal created considerable doubt on the availability of class closure orders in class actions filed in the Federal Court: see article here.

In February 2022, the Full Court was asked to clarify the position by addressing two reserved questions:

  • Does the Federal Court of Australia have power pursuant to s.33ZF or otherwise to make an order, which has the effect of providing that any Group Member who by a specified deadline: (i) has not registered in accordance with the orders of the Court; or (ii) has not opted out of this proceeding in accordance with the orders made by the Court, will remain a Group Member for all purposes of this proceeding but shall not, without leave of the Court, be permitted to seek any benefit pursuant to any settlement (subject to Court approval) of this proceeding that occurs before final judgment?

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