Australia, Nov. 22 -- Supreme Court of Victoria issued text of the following judgement on Nov. 15:

1 This dispute involves an objection by the plaintiff and the recipient to two subpoenas issued by the defendant. What is unusual is that both subpoenas have been issued by the defendant in support of its application that the judge managing the proceeding should disqualify himself for apparent bias.

2 The proceeding is a class action in which the lead plaintiff alleges that by reason of the defendant's conduct he and group members suffered loss or damage by acquiring shares in the defendant at a price higher than the shares would otherwise have traded on the market.

3 The plaintiff alleges that between 17 August 2016 and 23 October 2017 the defendant made representations about the performance and financial position of its buildings and interiors business and failed to disclose information concerning its true financial position, thereby inflating the value of its shares. It is alleged that in doing so the defendant engaged in conduct in contravention of the Corporations Act 2001 (Cth) ('Corporations Act'), Australian Securities and Investments Commission Act 2001 (Cth), the Australian Consumer Law being Schedule 2 to the Competition and Consumer Act 2010 (Cth), Financial Conduct Act 2013 (NZ) and the Fair Trading Act 1986 (NZ).

4 The proceeding was commenced on 2 September 2022 and was allocated to the Commercial Court Group Proceedings List. Until June 2024 the proceeding was case managed by Nichols J, the judge in charge of that list. On 4 June 2024 the proceeding was reallocated to Watson J, a judge with extensive experience in class action litigation. The proceeding was listed for a case management conference before his Honour on 30 October 2024.

5 Pleadings have been completed. On 5 June 2024 Orders were made by consent requiring the defendant to give discovery to be completed by 25 September 2024.

6 On 8 July 2024 the defendant filed a summons seeking security for costs. That summons was initially returnable on 30 October 2024 before Watson J.

7 The Funding Information Summary Statement explaining to group members how the proceeding is funded states that the lead plaintiff, Mr Fuller, has entered into agreements with his solicitor, Mayweathers Pty Ltd ('Mayweathers'), and a commercial litigation funder, CASL Funder Pty Ltd (ACN 645 229 643) ('Funder'). The Funder has appointed CASL Management Pty Ltd ('Manager') to assist the Funder with services in respect of the management of the litigation funding of the proceeding. Agreements between the lead plaintiff, the Funder and the Manager provide that:

(a) The Funder has agreed to fund 75% of the reasonable fees of Mayweathers in running the proceeding ('Lawyer's Funded Fees') and 100% of Mayweathers' disbursement costs ('Lawyer's Disbursements');

(b) The other or remaining 25% of lawyer's fees are conditional upon a successful outcome ('Lawyer's Remaining Fees'). If the proceeding achieves a successful outcome, Mayweathers is entitled to its Lawyer's Remaining Fees and an additional 25% of its Lawyer's Remaining Fees for the risk Mayweathers has agreed to assume in prosecuting the proceeding; and

(c) The Funder will provide any security for costs that might be ordered by the Court, and pay any costs order made against the lead plaintiff and in favour of any defendant.

*Rest of the document and Footnotes can be viewed at: (https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VSC/2024/712.html)

Disclaimer: Curated by HT Syndication.