A significant class action against Waller Legal Pty Ltd has been halted after the Supreme Court of Victoria ruled that the proceeding should no longer continue as a group proceeding. The case, Jane Jones (a pseudonym) v Waller Legal Pty Ltd [2025] VSC 42, involved allegations that Waller Legal failed to adequately advise clients regarding their claims for damages for loss of earning capacity in abuse compensation cases.
Defendant’s Application to End the Group Proceeding
Waller Legal sought to have the case de-certified as a class action, arguing that each group member’s claim was factually distinct. The firm contended that the circumstances of each client’s case, the advice they received, and the merits of their individual claims varied too significantly for a collective proceeding to be appropriate.
In contrast, the plaintiff argued that Waller Legal had a consistent and erroneous approach to advising clients on economic loss claims, which would have affected all group members similarly. The claim against Waller Legal was brought under contract, tort, and the Australian Consumer Law.
Court’s Rationale for Dismissing the Class Action
Justice Gorton ruled in favour of Waller Legal, determining that the proceeding should not continue as a group action due to the high degree of individual differences in each claim. In his judgment, Gorton J noted:
“The common questions of law are either not in dispute or not likely to be the subject of dispute. The claim of each group member for damages from Waller Legal is distinct and will depend on a detailed assessment of the actual advice that each group member was given, the legal context at that time, and the merits of their underlying claim.”
The court found that a class action would not lead to significant efficiencies in resolving the claims. Given the complexity and individual nature of each case, the judge concluded that a class proceeding was not the most effective way to address the claims.
Impact on Group Members
The decision affects approximately 700 group members, including 61 clients of Rightside Legal. While the ruling does not preclude individual claims from proceeding, it may pose challenges for some claimants. Justice Gorton acknowledged that some group members might face statute-of-limitations issues or receive less in penalty interest than they would have under a group proceeding. However, he held that such consequences did not outweigh the necessity of terminating the class action.
This decision reinforces the court’s discretion under section 33N of the Supreme Court Act to discontinue group proceedings where individual differences outweigh common issues. It highlights the challenges of pursuing class actions in cases involving varied factual circumstances and individual legal assessments.
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