Background
These representative proceedings against Toyota, commenced in 2019, were due to resume for an initial trial in October 2026. After mediation, the parties entered a settlement deed under which Toyota would pay $750 million inclusive of legal costs and any litigation-funder payment, subject to approval under s 33V of the Federal Court of Australia Act 1976 (Cth).
The parties sought to keep confidential parts of evidence supporting the settlement approval application, including the settlement calculation, distribution methodology, reduction-in-value amounts, and the basis for individual group-member payments. They initially sought an interim suppression or non-publication order pending the approval hearing.
The Court’s Holding
Lee J dismissed the application for suppression or non-publication orders. An interim order under s 37AI could not operate as a holding device until a later approval hearing: if made without deciding the merits, the application had to be determined urgently. The Court therefore treated the application as seeking final relief.
The requested secrecy was not necessary to prevent prejudice to the proper administration of justice under s 37AG(1)(a). Open justice was paramount, particularly because a settlement in a large class action affects absent group members. A private confidentiality clause and concern that group members might feel stress or misunderstand the material did not justify restricting access to evidence relevant to the proposed settlement and distribution.
Key Takeaways
- Parties cannot use an interim suppression order to obtain the practical benefit of final confidentiality without urgent determination.
- In class actions, group members ordinarily have a legitimate interest in settlement terms, distribution arrangements, and proposed deductions.
- Possible confusion, anxiety, or “perplexity” among group members is not a sufficient basis for secrecy.
Why It Matters
The decision reinforces that settlement approval in representative proceedings is a public judicial process, not a matter the parties may control through contractual confidentiality. Suppression of material bearing on a proposed class-action settlement will be exceptional and require a demonstrated, identifiable need.
The Court listed the s 33V settlement approval application for hearing on 20 November 2026.