Class Action – payment to the class rep ?

The scheme provides for payment to the class representative. For example, in Johnston v Endeavour Energy [2016] NSWSC 1132 it amounted to $25,000. This payment is intended to compensate the representative for their time, inconvenience and burden associated with taking on and discharging the obligations of lead plaintiff in attending to matters on behalf of group members.

The appropriateness of compensating class representatives was established in Darwalla Milling Co Pty Ltd v F Hoffman-La Roche & Ors Ltd (No 2) [2006] FCA 1388; 236 ALR 322 where Jessup J recognised that he was dealing with a then novel request for payment outside the normal categories allowed in litigation. His Honour held that it was:

“76 … prima facie reasonable that particular parties who have sacrificed valuable time and incurred expenses in the interests of prosecuting [a] proceeding on behalf of group members as a whole should be able to look to the corpus of the settlement sum for some degree of compensation and reimbursement. More importantly, perhaps, I would hold that group members who have benefited from the proceeding could not be heard to deny the reasonableness of such a proposition.”

The circumstances of the case dicate the quantum of payment. in Johnston v Endeavour Energy [2016] NSWSC 1132 there were 54 personal injury (PI) claims!

You be the judge. Was $25,000 fair. I suspect so.