Class action litigation against multiple respondents no longer a Gray area

Key Points:

The clarification of "claims against the same person" should lead to fewer interlocutory skirmishes in class actions in the Federal Court, and a quicker focus on the real issues in dispute.

The Federal Court has now settled the long-running controversy about whether each group member in a class action with multiple respondents must have a claim against each respondent.

The recent decision in Cash Converters International Limited v Gray [2014] FCAFC 111 establishes that each member of a group does not need to have a claim against each respondent. The decision provides welcome clarity for applicants and respondents alike.

Debate and confusion over group members' claims

Section 33C(1) of the Federal Court of Australia Act 1976 (Cth) requires that in order to commence proceedings under Part IVA of the Act a minimum of seven or more persons must have a claim against the same person. There have been conflicting authorities in the Federal Court and in Victoria as to whether this means that all group members must have a claim against each respondent. The debate does not arise in New South Wales - section 158(2) of the Civil Procedure Act makes it clear that not all group members need to have a claim against each defendant.

In Philip Morris v Nixon (2000) 170 ALR 487...