On 27 July 2020, the Full Federal Court heard argument in the matter of Augusta Ventures Limited v Mt Arthur Coal Pty Limited & Ors.
This hearing represents an important milestone in how security for costs are dealt with in funded class action litigation. Adero Law considers the hearing and subsequent decision of the Full Federal Court integral to whether funding options are available in the future of industrial relations-based class actions in Australia. This includes the pricing by which a funder can seek its return.
It is Adero Law’s view that security for costs should not be imposed on litigation funders as it would require a third party to litigation to bear liability for a respondent’s cost and as such makes applicants’ cases more expensive with no corresponding increase to respondents’ liability. An outcome which ensures that there is no security for costs imposed is an essential requirement to maintain balance and fairness in industrial relations matters.