Event and Time
Event Description
This case involves representative proceedings initiated by plaintiffs who experienced business interruptions due to a nuisance caused by the construction of the Sydney Light Rail. The central legal question pertains to whether the plaintiffs can claim the litigation funder’s commission as part of their damages. The matter arises from a litigation funding agreement the plaintiffs entered into to pursue their claims.
Application and Claims
- The plaintiffs claim damages from the defendant for interference with their businesses.
- They seek to include the litigation funder's commission, which is 40% of the sums awarded, as a head of damages in their claim.
- The defendant contests this claim, arguing that the commission should not be regarded as damages.
Judicial Decisions
- The court concluded that the plaintiffs are not entitled to recover the funder’s commission as damages.
- The question regarding the reasonableness of the commission does not arise as the principal claim was dismissed.
Dispute Points and Legal Basis
Dispute Points
Plaintiffs' Contentions
- Assert that the funder's commission is a reasonable loss resulting from the defendant's tortious conduct.
- Claim the costs should be included in damages due to the foreseeable nature of the commission incurred through necessary litigation financing.
- Refer to previous case law suggesting that litigation funding costs should be recoverable.
Defendant's Position
- Argues that the funder’s commission is not caused by the defendant’s actions and should not be included as damages.
- Contends the nature of the funder's commission is distinct from traditional legal costs recoverable in litigation.
- Maintains that the commission is a cost and not a loss caused by the tortious conduct, emphasizing the need for remoteness and foreseeability in damage claims.