A class action, also known as a 'group proceeding' in Victoria, is a legal case where one or more plaintiffs file a claim on behalf of a group of people whose claims arise from similar circumstances. This process allows individuals to collectively seek legal remedies, enhancing access to justice and promoting efficient resolution of common issues.

To initiate a class action in Victoria, the following criteria must be met:

• Seven or more persons have claims against the same defendant(s).
• The claims arise from similar or related circumstances.
• There is a substantial common issue of law or fact to be resolved.

These requirements ensure that the group proceeding is appropriate and that collective legal action is justified.

Victoria employs an opt-out system for class actions, meaning all individuals fitting the group definition are automatically included unless they choose to opt out. The court will issue an 'opt-out notice' detailing the process and deadline for opting out. If a group member does not opt out by the specified date, they are bound by the court's judgment or any settlement reached.

Possible outcomes of a class action include:

• Settlement: The parties agree to resolve the matter, often involving compensation to group members, subject to court approval.
• Judgment: The court delivers a decision after a trial, which may result in remedies such as damages or injunctive relief.
• Discontinuance: The proceeding is discontinued, either voluntarily or by court order, without a resolution on the merits.

All outcomes require court oversight to ensure fairness to all group members.

In Victorian class actions, the representative plaintiff typically bears the responsibility for legal costs. However, litigation funding arrangements or 'no win, no fee' agreements may be in place to assist with these expenses. If the class action is successful, the court may order the defendant to pay a portion of the legal costs. Conversely, if unsuccessful, the representative plaintiff might be liable for the defendant's costs, though courts have discretion in making such orders.

The court plays a crucial role in managing class actions to ensure they proceed fairly and efficiently. This includes:

• Supervision: Overseeing the conduct of the proceedings to protect the interests of all group members.
• Approval of Settlements: Ensuring any proposed settlement is fair and reasonable before granting approval.
• Case Management: Implementing procedures to streamline the process and resolve common issues effectively.

The court's involvement is designed to balance the rights of the parties and uphold the integrity of the legal process.

Yes, a class action can be settled out of court. However, any settlement agreement must receive court approval to ensure it is fair and reasonable for all group members. The court will assess factors such as the terms of the settlement, the process by which it was reached, and its impact on the group members before granting approval.

Victoria employs an opt-out system for class actions, meaning all individuals who fall within the defined group are automatically included unless they choose to opt out. The court will issue an 'opt-out notice' detailing the process and deadline for opting out. If a group member does not opt out by the specified date, they are bound by the court's judgment or any settlement reached.

Participating in a class action offers several advantages:

• Access to Justice: Individuals with similar claims can collectively seek legal remedies, even if their individual claims might be too small to pursue separately.
• Cost Efficiency: Sharing legal costs among group members makes litigation more affordable.
• Consistency: Resolving common issues in a single proceeding ensures uniformity in outcomes for all group members.

These benefits enhance the effectiveness and fairness of the legal process for individuals with common grievances.

Serving as a representative plaintiff in a class action carries certain risks:

• Cost Liability: If the class action is unsuccessful, the representative plaintiff may be responsible for the defendant's legal costs and any adverse costs orders.
• Time Commitment: The role demands significant involvement, including attending court proceedings and consultations.
• Public Exposure: Acting as the face of the litigation can attract media attention and public scrutiny.

It's essential for potential representative plaintiffs to understand these risks and seek legal advice before proceeding.