MARK DREYFUS
SHADOW ATTORNEY-GENERAL
SHADOW MINISTER FOR CONSTITUTIONAL REFORM
MEMBER FOR ISAACS
CLASS ACTIONS AND LITIGATION FUNDING INQUIRY
The Morrison Government's inquiry into class actions and litigation funding is a shameless move towards denying justice, and fair compensation for ordinary Australians.
Litigation funding and class actions provide a vital path to justice for ordinary Australians trying to uphold their rights against wealthy defendants with vastly greater resources.
Just last November the Federal Court ruled in favour of the three lead applicants in a class action of more than 1,350 women who sued Johnson & Johnson and two subsidiaries, for negligence in relation to pelvic mesh implants.
Its no coincidence this inquiry was first proposed in March just days after 10,000 victims of the Morrison Governments cruel Robodebt scheme signed-up to a class action to defend their legal rights.
Contrary to government claims, research by commercial law firm Allens found the total number of class action filings was actually down 20 per cent in 2019.
Shareholder actions were actually down 63 per cent and so far this year there are just three new shareholder cases none of which relate to COVID-19 matters.
Significantly, the biggest cause of new cases in 2019 came from consumer actions arising from the banking royal commission that the government voted 26 times to prevent.
Labor will always support sensible law reform. But this Government has just held a comprehensive inquiry into class actions and litigation funding - the Australian Law Reform Commissions Integrity, Fairness and Efficiency An Inquiry into Class Action Proceedings and Third-Party Litigation Funders.
After a comprehensive inquiry lasting a year and involving consultations with some 60 key stakeholders, the ALRC delivered its comprehensive report to the Government on 21 December 2018, and which was tabled on 24 January 2019.
The over 300-page final report made 24 recommendations for reform of class action law and procedure in Australia.
Yet despite claiming this is an area of law in urgent need of reform, some sixteen months later the Government has still to even respond to the ALRC's report.
Notably, the ALRC did not recommend a significant tightening of regulation around litigation funding or class actions, and did not oppose the introduction of contingency fees.
Now, it appears that the Government and some of their mates aren't happy with the considered recommendations of the independent ALRC, so the Government is using its numbers in the House to create yet another inquiry, controlled by them, to give it the findings they want.
Labor will not support this Government-controlled inquiry, created to stack the deck against ordinary Australians trying to uphold their rights in court.
TUESDAY, 12 MAY 2020
