Chris Merritt From: The Australian May 05, 2010 12:00AM
THE federal government plans to remove court-imposed rules that have brought the class action business to its knees. The government plans to use regulations to reverse last year's Federal Court ruling that subjected class actions to the same regulatory regime as managed investment schemes.
This decision had stopped the funding of new class actions.
Corporations Law Minister Chris Bowen said the Federal Court decision, in a case known as Brookfield Multiplex, had triggered serious concerns about access to justice.
The government's decision to reverse it would allow thousands of people to continue "enjoying access to the courts in a convenient and affordable manner", Mr Bowen said.
The Federal Court's ruling had required class actions to comply with MIS rules on licensing, conduct and disclosure before they could proceed. Mr Bowen said the government was considering other regulations on class actions "to manage potential conflicts of interest" through guidance by the Australian Securities and Investments Commission.
When class action lawyers and litigation funders were considering settling a case, he said, "it is important to ensure that appropriate arrangements are in place to protect consumers and ensure that their interests are paramount".
The decision to reverse Brookfield Multiplex was welcomed by class action law firm Maurice Blackburn, which said at least 10 class actions would now proceed.
They included one by abalone fishermen against the Victorian government and a case against National Australia Bank over alleged non-disclosure of collateralised debt obligations.
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