This matter related to a class action commenced by Stillwater Pastoral Company, which seeks damages from Stanwell Corporation and CS Energy as a result of alleged misuse of market power. The class action was funded by LCM, as specified by the group definition.
Stanwell commenced a separate proceeding seeking a declaration that LCM was operating an unregistered management investment scheme that had not been grandfathered under the Corporations Amendment (Litigation Funding) Regulations 2020 (Cth). Stanwell sought consequent injunctions restraining LCM and Stillwater. LCM Funding brought an application to refer the proceedings to the Full Court and a cross-claim seeking to challenge the conclusion of the Full Court in Brookfield Multiplex Ltd v International Litigation Funding Partners Pte Ltd (2009).
The Court dismissed the application of Stanwell, the application of LCM to refer the proceedings to the Full Court and the cross-claim of LCM. Beach J found that the scheme had been grandfathered under the CALF Regulations and expressed views about the correctness of the conclusions in Brookfield Multiplex. LCM has filed an appeal against the dismissal of its cross-claim so the correctness of Brookfield Multiplex may shortly come to be considered by the Full Court.
Michael Hodge QC (with F Lubett) appeared for the Interested Party, instructed by Herbert Smith Freehills.
The judgment is published here.