Piper Alderman is delighted to have assisted LCM with an application seeking a declaration that its class action funding agreements are enforceable and are not void for public policy reasons.
The Supreme Court of Queensland held that the funding agreements are not, by reason of maintenance, champerty or public policy, unenforceable, as Queensland’s class action regime permits class actions to be commercially funded. In reaching its decision, the court considered the lengthy history of maintenance and champerty and whether the torts remain in Queensland, as the tort has not been abolished by statute in Queensland. The court also considered whether the terms of the funding agreements gave LCM an undue level of control over the proceeding.