Well managed group actions will have a clear idea of how proceeds will be distributed well before any settlement proceeds are collected.
Depending on how the case was funded, there is likely to be a waterfall or priorities agreement, making sure that solicitors, barristers, insurers, funders and any other parties who have provided services on a “no win no fee” or “no win, reduced fee” basis are able to collect their success fees in the right order.
Then there will be distribution amongst the members of the group action. Ordinarily is should be a pro rata distribution according to the level of losses, but there are sometime sub-groups within the claimants which mean there are pockets of different entitlements.
TYPICAL TIMESCALE – THREE MONTHS
Step 14: Alternative Dispute Resolution (ADR)