A landmark decision in Queensland has confirmed the legality of litigation funding agreements for class actions in the state.
Clyde & Co, on behalf of Murphy Operator, successfully applied for a declaration that the funding agreements were enforceable, after the Supreme Court of Queensland found that such funding agreements do not involve unlawful conduct or purpose and are not prejudicial to the administration of justice.
The court held that such funding agreements accord with the public policy of Queensland's relatively new representative proceedings regime.
“This much-anticipated decision is critical to the operation of the class actions regime in Queensland,” said Maurice Thompson, partner at Clyde & Co. “It concerns funding agreements between a litigation funder and class action group members, and in particular whether such agreements are unenforceable by reason of maintenance and champerty, or by reason of being contrary to public policy.”
Thompson said the landmark decision “will have a very significant influence on the conduct of class actions in Queensland going forward and will likely have a ripple effect across other states.”
