The judge asked to approve the $11 million settlement in a class action against retirement living operator Aveo Group has appointed contradictors Lachlan Armstrong KC and Kane Loxley to look over the settlement.

Federal Court Justice Bernard Murphy (pictured) said the contradictor must be appointed to examine the terms of the settlement, which he said was effectively a settlement for costs and unlikely to leave the group members will much money. 

The contradictor has two inseparable functions: to seek to represent the interests of particular parties whose interests would not otherwise be represented; and to do so in a manner that assists the Court. 

Justice Murphy also has appointed a costs referee amid a dispute between the plaintiff’s law firm Levitt Robinson and its US litigation funder Galactic.

He added that the opinion of the costs referee’s report did not appear to differ from Levitt Robinson’s costs calculations. 

Justice Murphy said there was a “couple of million” to be distributed amongst the group members, saying he needed further information on the nature of the settlement, which was reached on the sixth day of a trial on 27 March.

A case management hearing is listed for 19 October with the settlement approval application scheduled for 22 November.

The class action claimed in essence that Aveo was underhanded in its introduction of a new contract, marketed as the Aveo Way, particularly with Aveo strata contract residents.

Levitt Robinson agreed to a public statement, signed by Senior Partner Stewart Levitt (pictured), which conceded the Aveo Way contract scheme is lawful and that the Federal Court was likely to rule that Aveo had done nothing underhand.

The SOURCE:  Six years and counting. Aveo Group has not been found to be doing anything wrong.