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ARTICLE · 18 JUNE 2025

The Australian High Court endorses soft class closure notices

Landmark decision has major implications for representative proceedings. Courts have the power to approve 'soft class closure' notices under s175(5) CPA.

AustraliaLitigation, Mediation & Arbitration

Introduction

In a landmark decision with major implications for representative proceedings in Australia, the High Court of Australia in Lendlease Corporation Limited v Pallas [2025] HCA 19 has confirmed that Courts have the power to approve 'soft class closure' notices under section 175(5) of the Civil Procedure Act 2005 (NSW) (CPA).

The decision resolves a long-standing inconsistency in legal authority and provides welcome clarity for litigants, funders and insurers. It confirms that Courts may facilitate fair and efficient settlement of class actions by notifying group members that failure to register could result in exclusion from a settlement's benefits, even though they remain bound by the outcome.

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