Damages stop short of litigation funding costs, Australian High Court confirms

Ian Bolster, John Pavlakis, Angela Pearsall and Fred Prickett of Ashurst share that Australia’s High Court has confirmed litigation funding commissions cannot be recovered as a separate head of damages and must instead come out of any award, reinforcing orthodox damages principles across tort claims, preserving the existing class actions risk profile for defendants, and underscoring that funding economics remain a claimant side allocation issue rather than an added source of defendant exposure.

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