Will the Class Action even continue?The Bill that could shake up...

Will the Class Action even continue?

The Bill that could shake up the Class Action regime.

Treasury Laws Amendment (Measures for Consultation) Bill 2021: Litigation funders

"The Draft Bill (link) aims to further regulate litigation funding in the class action context through the MIS regime. If passed by Federal Parliament, the Draft Bill would effectively cap the fees paid by class members to lawyers and litigation funders at 30% of any settlement or award of damages. The Draft Bill would also give courts the power to vary a proposed distribution to ensure it is 'fair and reasonable'. Further, payment of the funder's fee would be limited to class members who expressly sign up to the scheme, rather than all class members who fall within the class definition."
-----------

Slater Gordon have this to say about it, I guess they're upset because it severely limits the number of class members and caps their fees in the event of a successful claim:

"The Morrison Government has introduced a Parliamentary Bill to create new laws that will detrimentally impact access to justice for everyday Australians.

If passed, the new laws will drastically limit access to class actions for Australians, meaning that many future class actions will be unviable to run. The Morrison Government claim these laws are about maximising returns for litigants, when, in fact, it’s a hand up to big business to prolong and protract litigation to make class actions economically unviable for funders and law firms.

If we do not stop these laws, thousands of everyday people who would normally benefit from class actions through the legal system will have no means of accessing justice in the same way that class actions have always provided.

These laws are a smack in the face for all Australians who believe in the right to justice for all"