Vol. 38 No. 1 (2019): The University of Queensland Law Journal
Articles

Australian Class Action Settlement Distributions Scheme Design: Deciding Who Gets What

Rebecca Gilsenan
Principal, Maurice Blackburn Lawyers
Bio
Michael Legg
University of New South Wales
Bio

Published 2019-11-11

Abstract

Class actions are legal proceedings brought on behalf of numerous persons, known as group members. When a class action settles for a monetary payment to compensate the group members, the payment needs to be divided among the group members. The division and distribution takes place pursuant to a court-approved settlement distribution scheme (‘SDS’). Although the SDS is central to the determination of the actual amount that an individual group member receives from a class action settlement, the design and operation of SDSs have attracted little critical attention. This article seeks to start the process of elucidating the operation of SDSs by explaining three main types of class action SDS: (1) global sum with formula; (2) global sum with individualised assessment; and (3) process approach. The article then draws on those SDS models and class action settlement decisions to develop guiding principles or steps for the design of an SDS.