Litigation and Alternative Dispute Resolution

Multiple Respondents in Class Actions: The Federal Court Resolves the Debate

Contact: Michael Bath, Special Counsel and Christian Breen, Senior Associate; Carter Newell (Queensland, Australia)

Introduction

Class action proceedings against multiple respondents have been the subject of conflicting judicial authority and debate.1 The Full Court of the Federal Court of Australia in Cash Converters International Limited v Gray2 recently considered whether s 33C of the Federal Court Act 1976 (Cth) (FCA) requires each group member in a representative proceeding to have a claim against each respondent.

Seemingly resolving more than ten years of uncertainty, the Full Court held that it is not necessary for each group member to have a claim against each respondent.  In doing so, the Full Court thoroughly explored the legislative framework surrounding commencing a representative proceeding, as well as the legal authorities which have considered the issue.

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