Queensland introduces Class Action legislation

Queensland Class Actions Blog Post
Earlier this month, the Queensland Parliament enacted legislation to allow class actions to be commenced in the Supreme Court of Queensland. The new regime largely adopts class action procedures already in place in other jurisdictions. IMF Associate Investment Manager, Alexandra McVay, details more about the new regime.

The Class Action regime at a glance

Class actions are a well-known and accepted area of practice in Australia. However, prior to Queensland legislative changes on 8 November 2016, groups of effected persons with similar claims against a likely defendant were restricted in their available options. As a result, Queensland class action proceedings have been commenced in other jurisdictions.

The new legislation largely adopts the procedures set out in the Federal Court, New South Wales and Victoria Supreme Courts, including:

  • a class action may be brought by a 'representative' on behalf of 'group members' who have claims against the same person;
  • there must be seven or more persons whose claims arise out of the same, similar or related circumstances and whose claims give rise to a substantial common issue of law or fact.
  • the group members are to be notified of the class action, their rights to 'opt-out', the method to opt out and the implications of doing so. Unless a group member 'opts out' before a date fixed by the court, they will be bound by the result of the proceedings.
In adopting the decision of the Full Federal Court in Cash Converters International- v- Gray, the Act also allows for a class action to include other defendants, even if not all group members have a claim against that additional defendant/s.

Also of importance, is that the class action can be commenced regardless of the kind of relief sought, including claims for damages requiring individual assessment or individual contracts, transactions and separate acts or omissions between the defendant and individual group members.

Want to know more?

IMF Bentham has funded some of Australia's largest class actions. If you'd like to speak with one of our local Investment Managers, please contact our Queensland office on (07) 3108 1311.