This was a class action against Westpac Banking Corporation and two related companies (together Westpac) on behalf of persons who acquired consumer credit insurance policies for Westpac credit cards, flexi loans or personal loans between 1 January 2010 and 30 June 2019. The applicant alleged, among other things, that Westpac engaged in misleading or deceptive conduct and/or unconscionable conduct, including by representing that the policies were not optional or provided value and by using unfair tactics in arranging the issue of the policies.
In this judgment, O’Bryan J gave reasons for approving a settlement of the proceeding in the amount of $29 million, pursuant to s 33V of the Federal Court of Australia Act 1976 (Cth). His Honour found that the settlement was fair and reasonable as between the applicant and Westpac (see [51]-[55]) and as between class members (see [59]). In approving the settlement, his Honour made orders approving the following deductions from the settlement sum:
approximately $6.7 million for the applicant’s legal costs and disbursements (including uplift) of the applicant to the date of the settlement approval – in doing so, his Honour adopted the report of the Court-appointed costs referee Cate Dealehr, save for one minor and insignificant exception;
approximately $1.6 million for the potential future costs of the administration of the settlement, comprising approximately $575,000 for the applicant’s solicitors’ (Slater & Gordon) estimated legal fees and approximately $1 million for disbursements associated with the work of Deloitte, including the development of a secure registration portal and assessment of the data provided through that portal;
After the above deductions, approximately $20.3 million will be transferred to registered class members, being approximately 70% of the total settlement sum.
Federal Court of Australia, O’Bryan J,
21 July 2023
Applicant’s Solicitors: Slater & Gordon
Second Respondent’s Solicitors: Allens
Applicant’s Funder: N/A
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