Victoria: First Australian State To Permit Contingency Fees In Class Actions

Plaintiff law firms are celebrating! From 1 July 2020 class action lawyers can apply to the Supreme Court of Victoria for permission to charge costs using a contingency fee model. This significant reform, which has been the subject of scrutiny by state and federal law reform agencies since 2014, is now law in t

Introduction

In Australia there has been a statutory prohibition preventing lawyers from charging a contingency fee on damages obtained by a successful party. An inherent conflict was recognised to exist between the lawyer's own interests and those of the client, which may affect the advice provided. However with the burgeoning litigation funding industry in Australia, plaintiff firms have been lobbying governments for law reform which enables increased access to justice through law firms receiving their costs on a contingency fee basis. Despite the Federal Parliament's current Joint Committee Inquiry on Corporations and Financial Services into Litigation