Morrison responds to Michael West, page-28

I agree, the question of why SHJ used this expensive source of finance is a sane, reasonable, commercial question which the Board should have asked of management. Arguably, transparent reporting might have disclosed such reasons as well.
IF the commercial reasons stack up, such as expedient lender of last resort (doubtful) then the full claim might stand a chance.
I’d suggest an included clause in the loan arrangement such as ‘shared losses in the event of a class action no win’ might have a smattering of commerciality in that SHJ needed to reduce its mounting costs risk.Afterall, the Board and management have a risk mitigating responsibility.

What I believe is beyond dispute is the notion that interest (being a cost of capital) is a legitimate cost of mounting a decent class action matter, or ‘No win no cost’ cases as well.

Could the judge make an arbitrary decision to allow interest at a more acceptable rate? Possibly, but it would have to be at the very high end of interest rates, taking into consideration that commercial banks have ALWAYS operated on the principle of high risk - high interest rate. The interest rate on a 10 year Australian bond is way lower than that of a Ukrainian War Bond.

Last point - and one of balance - which young Callum of Wests media should appreciate - what would the financial cost to SHJ be of a total loss of the class action. Sure the victims have their medical issues, but they didn’t have to invest massive personnel, financial and ancillary resources all of which would be worth zero - and the potential to cover all or a portion of the legal costs of a litigant defendant who fought it all the way. Wests’ journalism has been ‘guilty as charged and now we will selectively gather the information to suit’. Classic confirmation bias.

For a judge to make an arbitrary apportionment of interest might also see him decide that barrister costs might be better and least cost in using legal aid barristers rather than QC’s of which he was likely one before coming a beak. Good for the goose, good for the gander.