Results | Nov 8, 2018

Successful Approval of Litigation Funding Agreement in Price-Fixing Class Action

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In a decision released on October 29, 2018, the Superior Court of Justice approved a Litigation Funding Agreement (“LFA”) between the proposed representative plaintiffs in a packaged bread price-fixing class action and IMF Bentham Capital Ltd. and its Australian parent IMF Bentham Ltd. The defendants to the class action opposed a term in the LFA that limited Bentham’s obligation with respect to an order for security for costs to the provision of an undertaking to satisfy an adverse costs award. Jonathan Lisus and Andrew Winton successfully argued, on Bentham’s behalf, that the LFA should be approved, and that the undertaking from Bentham was an appropriate means of satisfying any order for security for costs.

The ruling confirmed that the issue of whether the Court could accept an undertaking as security for costs could be decided at the LFA approval stage before a motion for security for costs was brought by the defendants. The decision can be read here: