Class action group funding legislation will improve access to justice, says ALA

27th Nov 2019

New legislation introduced in Victorian Parliament today which allows lawyers to charge a percentage of the settlement in a successful class action - with approval from the Supreme Court - will help more people access the legal system, says the Australian Lawyers Alliance (ALA).

“The ALA welcomes this legislation as it is will directly improve access to justice in Victoria,” said Mr Jeremy King, Victorian State President, ALA.  “The new law will increase the flexibility and availability of funding which will enable more people to obtain justice through class actions. 

“It will clearly benefit vulnerable and disadvantaged individuals who may otherwise be unable to pursue a claim because of the cost and, ultimately, it will mean more compensation makes it into the pockets of class action members.

“We are very pleased to see that the proposed legislation requires group funding arrangements to have court approval so there will be appropriate oversight and regulation. This will ensure that the interests of class action members are always protected.”

The proposed legislation is a result of the recommendations made in recent reports by the Productivity Commission, the Victorian Law Reform Commission and Australian Law Reform Commission. 

“The inquiries conducted by these three different bodies all recommended lifting the prohibition on percentage based fees in class actions because of the positive impact this will have on individuals.  We are pleased to see the government is making a change to policy that is evidence-based and designed to improve access to justice,” said Mr King.

The ALA is a national association of lawyers, academics and other professionals dedicated to protecting and promoting justice, freedom and the rights of the individual.

Tags: Victoria