Under new laws proposed by the Morrison Government, people in a class action will have their legal funding capped at 30% of their final compensation. This is an outrageous intervention into people’s right to fund a class action. In many cases, it will make it easy for big corporations to outspend their victims to win the case or even just force plaintiffs to drop their case.
Getting enough funding to support a victims’ Class Action is crucial, and the current system allows victims to make arrangements to have litigation funders cover their costs – so victims’ never get stuck with huge costs, even if they lose.
But Scott Morrison has teamed up with the big end of town to cut off those sources of funding – by making them illegal or limiting the legal right for victims to ask a litigation funder to back their case.
The result will be fewer class actions. Less compensation for victims. And more let-offs for the big end of town.
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