VIC Class Action - Litigation Costs

[Danman132]

I've been contacted by a law firm regarding a class action against a financial services firm. Apparently I'm already included in the class action.

My question is, if I don't Opt-out will I be liable for the legal costs if the class action fails?

 

[Docupedia]

Per the Victoria Law Reform Commission: 5. Risks and cost burdens in class actions - Victorian Law Reform Commission

"5.2 Generally, class members are under no obligation to contribute to costs unless or until a successful outcome is known; and in Victoria, the Supreme Court has found that security for costs cannot be ordered against them."

This may be different for the 'representative plaintiff' - which it doesn't sound like you are.

Be aware that class actions, particular those funded by a litigation funder, are generally expensive and get paid out of any 'winnings' first. If successful that may mean that any share you achieve is remarkably low. That should be tempered against the lack of risk to you if the action fails. Also note that it means you can't take separate action against the defendant (i.e. you can't have your cake, and eat it too).

 

[Tim W]

I've been contacted by a law firm regarding a class action against a financial services firm. Apparently I'm already included in the class action.

My question is, if I don't Opt-out will I be liable for the legal costs if the class action fails?

Rather than saying that you are already a party, perhaps the letter says
that you are in the class of persons on whose collective behalf the claim is being brought?

 

[Danman132]

Rather than saying that you are already a party, perhaps the letter says
that you are in the class of persons on whose collective behalf the claim is being brought?

Well it says that I'm part of it unless I opt out.
So if I don't opt out, I'm part of it.

 

[Tim W]

Well it says that I'm part of it unless I opt out.
So if I don't opt out, I'm part of it.

Is this a formal opt-out notice, for proceedings that have already commenced?
Or is it basically just a sales pitch letter to class members about a proposed action?

You may find this helpful (just to be clear - it's not my firm)

 

[Danman132]

Is this a formal opt-out notice, for proceedings that have already commenced?
Or is it basically just a sales pitch letter to class members about a proposed action?

You may find this helpful (just to be clear - it's not my firm)

A formal opt out notice.