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[2024] VSC 436
Supreme Court of Victoria
2024-07-29
Matthews J
Original judgment source is linked above.
PRACTICE AND PROCEDURE - Group Proceedings - "Soft" class closure orders - Whether or not to consider applications by unregistered group members to participate in the proposed settlement and objections to the proposed settlement which have not been submitted within the time ordered by the Court - Supreme Court Act 1986 (Vic), ss 33ZF, 33ZG.
(a) the date by which group members could opt out of the Uber Group Proceedings was fixed as 4:00pm on 2 October 2023 (Class Deadline);
(b) by the Class Deadline, a group member could register their claim with the plaintiffs' solicitors, Maurice Blackburn;
(c) the means by which group members were to register their claim and what information they were to provide were set out in the orders;
(d) subject to further order, only group members who had registered by the Class Deadline (Registered Group Members) were entitled to any relief or payment arising from an agreement to settle the proceedings where that agreement was reached any time between 21 July 2023 and 3 March 2024 (the date was later extended by Court order to 17 March 2024) and the agreement is subsequently approved by the Court;
(e) any group member who did not opt out or register by the Class Deadline will remain a group member for all purposes of the proceedings but shall not, without leave of the Court, be permitted to seek any benefit pursuant to any such settlement (subject to Court approval) of the proceedings; and
(f) the content of notices and advertisements and the manner in which Maurice Blackburn was to advertise and give notice of the Soft Class Closure Orders was prescribed in the orders.
(a) orders for a notice of the Proposed Settlement to be given to group members (whether registered or not) (Notice);[2]
(b) a regime by which group members could object to the Proposed Settlement by submitting a completed notice of objection (the form of which was included in the Notice) and evidence (by way of affidavit), together with any written submissions (of no more than two pages) (Objections) to Maurice Blackburn and to the Court by 4:00pm on 2 July 2024. The email addresses to which the Objections were to be sent were set out in the orders;
(c) a regime in respect of group members who had not registered with Maurice Blackburn by the Class Deadline as set out in the Soft Class Closure Orders (Unregistered Group Members, or UGMs), which included steps as follows:
- (A) by 4:00pm on 7 May 2024, Maurice Blackburn was to make available on its website an online portal for the purpose of collecting the contact details of any person who is an Unregistered Group Member who wished to participate in the Proposed Settlement (Online Portal);[3]
- (B) once an Unregistered Group Member entered their contact details on the Online Portal, Maurice Blackburn was to send them an additional notice (Communication)[4] and the Notice;
- (C) By 4:00pm on 2 July 2024, Unregistered Group Members (each, a UGM) who wished to seek leave from the Court to participate in the Proposed Settlement were required to identify the basis on which the Court should grant permission to do so and provide evidence by way of affidavit in support, and any written submissions of no more than two pages (UGM Application) by email to Maurice Blackburn (the relevant email address being specified in the orders);[5] and
- (D) Maurice Blackburn was to provide the Court with a copy of UGM Applications received pursuant to sub-paragraph (C) above.
(d) orders for the appointment of an independent costs solicitor as a special referee for the purpose of conducting an inquiry and making a written report to the Court stating, with reasons, the referee's opinion as to the reasonableness of the plaintiffs' legal costs and disbursements incurred in relation to the proceedings and as to the reasonableness of the sum proposed for settlement administration costs (Costs Referee's Report). The Costs Referee's Report was to be provided to the Court and to the plaintiffs, on a confidential basis, by 4:00pm on 2 July 2024; and
(e) timetabling orders for the conduct of the Settlement Approval Application, including:
- (A) setting the deadline of 4:00pm on 2 July 2024 (2 July Deadline) for submitting an Objection or a UGM Application;
- (B) listing the proceedings for further directions at 10:00am on 25 July 2024 (subsequently changed to 24 July 2024 by orders made on 11 July 2024, which change of date was required to be advertised on the Court's website page for the Uber Group Proceedings and Maurice Blackburn's website for the Uber Group Proceedings);
- (C) specifying a date of 4:00pm on 9 August 2024 by which the plaintiffs and Harbour Fund III, L.P (being the litigation funder who had been granted leave to appear in respect of the Approval Application) were to file and serve any affidavits or written submissions on which they seek to rely in relation to the Approval Application. Any affidavits or written submissions over which they wished to claim confidentiality were to be sent to my Chambers by email, rather than filed and served, by that same deadline;
- (D) listing the Approval Application for hearing at 10:00am on 9 and 10 September 2024.
(a) as at the 2 July Deadline, 8,319 expressions of interest in submitting a UGM Application had been received on the Online Portal;
(b) in addition, between close of business on 28 June 2024 and the 2 July Deadline, Maurice Blackburn received approximately 8,000 emails regarding the Uber Group Proceedings, most of which consisted of Objections and UGM Applications;
(c) since then, Maurice Blackburn has been separating the emails into Objections, UGM Applications, and other enquiries;
(d) as at 9 July 2024:
- (A) approximately 2,000 emails remained to be triaged;
- (B) 7,717 emails had been triaged as relevant to a UGM Application;
- (C) 725 emails had been triaged as relevant to Objections; and
- (D) 9,500 emails remained to be processed.
(e) the collation and review process used by Maurice Blackburn included:
- (A) identifying and collating all emails relevant to a single individual's Objection or UGM Application;
- (B) confirming the characterisation of each email as an Objection or UGM Application, and cross-checking against previously received materials;
- (C) packaging each individual's materials into a single pdf. This is laborious: for example, one individual sent 70 emails relating to a single application with potentially relevant attachments in each; and approximately 2,000 people sent multiple emails relating to the one application; and
- (D) recording each UGM Application or Objection in a register containing names and contact details, whether the individual intends to attend the hearing of the Approval Application, the basis for the Objection or UGM Application, and whether any supporting material has been provided (being an affidavit, submissions, and/or statutory declaration). The register will be provided to the Court;
(f) Maurice Blackburn estimated that it would take approximately seven weeks to finish processing the Objections and UGM Applications.
UGM Applications and Objections received by the Court's registry
(a) 345 Objections submitted by the 2 July Deadline;
(b) 155 Objections submitted after that deadline; and
(c) 141 UGM Applications submitted by the 2 July Deadline; and
(d) an as yet unknown number of UGM Applications submitted after that deadline.
(a) receive any further updates from Maurice Blackburn as to the processing of the Objections and UGM Applications;
(b) ensure that the timetabling steps set out in the 19 April Orders were on track so that the hearing of the Approval Application could proceed smoothly on its scheduled dates; and
(c) determine whether to appoint a contradictor or amicus curiae in respect of the Approval Application; and
(d) make any further directions necessary for the conduct of the Approval Application.
Maurice Blackburn's update on processing Objections and UGM Applications
(a) Maurice Blackburn had:
- (A) completed the triaging process, that is, they had identified whether each email related to an Objection, a UGM Application, or another enquiry; and
- (B) allocated each email concerning an Objection to a single group member's objection and packaged up the Objection into a usable form;
(b) as a result of completing those steps, Maurice Blackburn received 576 'in time' Objections (297 of which were received on 1 to 2 July 2024); and
(c) the total number of 'in time' UGM Applications is not yet known, however, as at 5 July 2024, 483 such applications had been identified.
(a) Maurice Blackburn had received 1,236 emails in total, 94 of which relate to Objections and 1,142 to UGM Applications;
(b) none of these have yet been allocated to individual group members, so the total number of late Objections and late UGM Applications is not yet known;
(c) the time it would take to do so, and to further process them in the same way as the 'in time' Objections and UGM Applications, would be an additional week on top of the seven weeks already estimated; and
(d) as at the date of the hearing, Maurice Blackburn has continued to receive new emails concerning Objections and UGM Applications.
Whether to appoint a contradictor or amicus curiae in respect of the Approval Application
(a) to appoint independent counsel as contradictor, to review and make submissions about the Objections and the UGM Applications, at the hearing of the Approval Application; and
(b) that it was not necessary to appoint a firm of solicitors to process and review the Objections and UGM Applications, given the work being performed by Maurice Blackburn as described above.
Applications for extensions of time to submit UGM Applications
Objections and/or UGM Applications submitted after the 2 July Deadline
Whether to consider Objections and/or UGM Applications submitted after the 2 July Deadline
(a) In Mutch v ISG Management Pty Ltd (No 3),[7] Bromberg J referred to an affidavit filed by the applicant which 'annexed each of the 24 objections received ... including three objections received after the deadline for providing objections'.[8] The Court otherwise appears to have made no distinction between those objections received in time and those received after the deadline. In other words, all 24 objections were considered.[9]
(b) In Coatman v Colonial First State Investments Ltd,[10] Murphy J stated: 'A total of 18 notices of objections were received by the deadline, and one further objection was received out of time which I treated as having been lodged within time'.[11] His Honour did not refer to the circumstances surrounding the late provision of this objection.
(c) In Pearson v Queensland (No 2),[12] Murphy J stated: 'Thirty-nine written objections to the proposed settlement were filed with the Court ... Three late written objections were filed after the deadline, and I accepted them for filing'.[13] Again, his Honour did not refer to the circumstances surrounding the late provision of these objections.
(a) A notice to group members had stated:[15]
If you did not submit any Proof (or complete Proof) by 24 June 2008 you are not a Participating Group Members and you will not receive a distribution of money under the proposed settlement. If you are in this category, but you still wish to make a claim in the class action, you are required to provide a statement of reasons why you should be included... together with a Proof, and the Court will be asked to make a determination in your case. The statement of reasons and the Proof must be received by Maurice Blackburn... by no later than 4pm, 8 August 2008.
(b) Stone J stated in her decision that:[16]
Maurice Blackburn received statements of reasons and/or Proofs after the 8 August 2008 deadline, including after the hearing on 14 August [which hearing was to determine the applications from unregistered group members], from three members.
[t]he extent of their delay is such that, in my view, it is sufficient to justify their exclusion from the settlement group, and I will so order.
This Court has express power to under ss 33ZF and 33ZG of the Act to require group members to take a positive step in order to be entitled to obtain any relief or benefit arising out of a proceeding issued under Part 4A of the Act, and to specify a date after which, if that step has not been taken by a group member to whom the order applies, the group member is not entitled to any relief or payment or to obtain any such benefit. As s 33ZG provides, the power may be exercised irrespective of whether the Court has made a decision on liability or there has been an admission of liability by the defendant. Section 33ZG elaborates upon the power conferred by s 33ZF, by which the Court may make any order the Court thinks appropriate or necessary to ensure that justice is done it the proceeding.
(a) the issues raised by the proceedings are legally and factually complex, which complexity causes an increase litigation risk for both parties. If the Uber Group Proceedings do not settle, the costs of conducting the trial (set down for 10 weeks) will be very substantial. If the proceedings are settled on terms which meet Court approval, group members will have obtained an outcome judged to be in their interests while avoiding the significant trial costs and the inherent risks and uncertainties inherent in litigation;
(b) a step that is likely to assist the parties to resolve the proceedings is one which may produce a tangible benefit for group members. Closing the class is a step likely to assist the parties in resolving the proceedings;[22]
(c) closing the class also serves the overarching purpose set out in s 7 of the Civil Procedure Act 2010 (Vic) (the CPA);
(d) group members will receive appropriate and sufficient notice of the requirement to register;
(e) there is no identifiable prejudice to group members in requiring registration now, rather than at some later stage; and
(f) the orders will be subject to further order, such that UGMs may apply to be re-admitted to the class, by exercise of the Court's discretion, if they can sufficiently demonstrate unfair prejudice to them in the operation of the orders.
(a) the 19 April Orders provided UGMs with eight weeks to submit a UGM Application;
(b) the requirements for a UGM Application were not onerous: an affidavit and a short written submission of no more than two pages, which identified the basis on which leave should be granted; and
(c) that so many UGMs did submit their applications in time indicates that it was possible to do so. The number of individual 'in time' UGM Applications is not yet known, but based on current information it is likely to be in the thousands.
(a) UGMs emailing Maurice Blackburn after the 2 July Deadline were informed that the time for submitting UGM Applications had closed and Maurice Blackburn could not accept their applications; and
(b) having received such a response, it was incumbent upon those UGMs to make an application to the Court for an extension. There was no provision in the 19 April Orders for Maurice Blackburn to deal with extensions or applications for extensions.
The overriding principle is what the interests of justice require. Four well-recognised factors which require consideration on any application for an extension of time are the length of the delay, the reason for the delay, whether there is an arguable case and the extent of any prejudice to the other party.
(a) the overwhelming likelihood that the hearing of the Approval Application would not be able to go ahead on the scheduled dates, as the steps remaining to process the Late UGM Applications will involve a significant amount of material being provided too close to the hearing dates, even on a 'best case' scenario. I struggle to see how the hearing date can be maintained given the volume of the Late UGM Applications;
(b) in respect of the delay which would likely occur to the finalisation of the Approval Application. If the hearing cannot go ahead as planned, it is likely to be at least a further two months before a hearing can be accommodated, and even longer before the Court's decision is able to be made.
(c) the additional costs associated with processing the Late UGM Applications, which are significant, especially when one has regard to the already significant costs associated with processing the 'in time' applications, which costs would ultimately mean a further depletion of the proposed settlement proceeds;
(d) relatedly, there is the ongoing burden on limited Court resources in respect of the communications and materials which are being sent directly to Registry;
(e) the plaintiffs' counsel indicated that if the Late UGM Applications had to be reviewed and processed and the hearing date maintained, then it was likely that some of that material would not be able to be provided to the Court until after the hearing of the Approval Application. In my view, that is highly undesirable and ought to be avoided;
(f) the need for the Court to ensure compliance with its own orders; and
(g) importantly, there has to be a cut-off for UGM Applications, and the 2 July Deadline was and is reasonable. If the Late UGM Applications are to be considered, at what point does the Court draw the line? It cannot be reasonable for the deadline to be open-ended;
(a) first, considering objections to a proposed settlement does not involve the determination of individual rights. If a group member objects and the Court considers that the objection has merit, that is but one factor taken into account when determining whether or not to approve the settlement. After considering all relevant matters, the Court makes a decision to approve, or not approve, a settlement. The Court does not re-write the settlement. For example, if a group member's objection is that the proposed settlement will result in them receiving a lower sum than they think fair or reasonable, if the settlement is approved then it is not as if the Court grants approval conditionally on that group member receiving more than provided for under the settlement; and
(b) second, given the number of 'in time' Objections and the information which has been communicated to the Court about them in the updates from Maurice Blackburn, it is highly unlikely that Late Objections will raise grounds which have not already been expressed in the 'in time' Objections, other than matters specific to the individual group member. As for those matters, the discussion in sub-paragraph (a) above addresses those.
[1] Andrianakis v Uber Technologies & Ors; Salem v Uber Technologies & Ors [2023] VSC 415 (Soft Class Closure Reasons).
[2] The content of the Notice and the manner in which it was to be given to group members was prescribed in the 19 April Orders.
[3] The form and content of the text to be displayed on the Online Portal was prescribed in the 19 April Orders.
[4] The content of the Communication was prescribed in the 19 April Orders.
[5] The Notice and the Communication included instructions to the effect of sub-paragraph (C), being how to make a UGM Application; and
[6] These figures are provisional, only, as it is not yet known whether there is duplication between the various emails received by the Registry.
[7] [2023] FCA 648 (Mutch v ISG).
[10] [2022] FCA 1611 (Coatman v Colonial).
[12] [2020] FCA 619 (Pearson v Queensland).
[14] [2008] FCA 1311 (Dorajay v Aristocrat).
[18] Soft Class Closure Reasons, [3].
[19] Soft Class Closure Reasons, [6] (footnotes omitted).
[20] Soft Class Closure Reasons, [26].
[21] Soft Class Closure Reasons, [27] - [30].
[22] I note that at the time of the Soft Class Closure Reasons, a judicial mediation taking some days had been scheduled to occur prior to trial.
[23] [2005] VSC 45 (Vimplane).
[24] Vimplane, [29] (citations omitted).
[25] [2021] FCA 475 (Wetdal v Estia).
[26] Cf Blairgowrie Trading Ltd v Allco Finance Group Ltd (Receivers & Managers Appointed) (In Liq) (No 3) [2017] FCA 330.