Sunday 19 July 2020

Menzies Research Centre evidence before parliamentary joint inquiry appears to be built on shifting sands


Liberal-National Party drone, the Menzies Research Centre, was the 66th individual or organisation to make a submission to the Parliamentary Joint Committee on Corporations and Financial Services’ Inquiry into the Litigation funding and the regulation of the class action industry.

 This submission was written by twenty-five year-old James Mathias (shown left), Chief of Staff at the Menzies Institute and unsuccessful Liberal candidate for the seat of Holt at the 2016 feferal election.

It would appear from the evidence Mathias gave to the Inquiry that he shares an office with the Liberal Party in Canberra.

Young James is definitely not a scholar and, typical of that peculiar breed of young Liberals, he made a a mess of the submission right from the opening lines.

On 13 July 2020 The Guardian report his appearance at the first public hearing of the Inquiry:

Mathias appeared on Monday before a parliamentary committee investigating whether Australia’s class action industry needs tighter regulation…

The first line of the submission from the MRC – the Liberal party thinktank – quoted the federal court justice Michael Lee as saying in a judgment on 5 June: “The phrase ‘access to justice’ is often misused by litigation funders to justify what at bottom is a commercial endeavour to make money out of the conduct of litigation.”

It was purportedly from a judgment on class actions stemming from allegations that the Australian defence department negligently allowed toxic chemicals known as Pfas to escape from defence bases and contaminate local environments.

But Mathias, who was just 21 when he ran as a federal candidate for the Victorian seat of Holt in 2016, confirmed under questioning he had “not read the full judgment” cited in the submission as “judgments are very long – some hundreds of pages”.

O’Neill said the judgment was actually 37 pages long and “the words you quote in the very first line of your submission are nowhere, nowhere to be found in his honour’s judgment”.

The NSW senator said the only place that quote could be found was in an article in the legal journal Lawyerly on 9 June, titled “‘A significant inequality of arms’: Funding led to better outcomes in PFAS class action, judge says”…..

In Lee’s judgment of 5 June, the judge made a more qualified statement that “the term ‘access to justice’ is commonly misused, most often by some funders who fasten upon it as an inapt rhetorical device”.

He then cautioned against generalisations. While noting “litigation funding is about putting in place a joint commercial enterprise aimed at making money”, Lee went on to say that recognising that reality “does not diminish the importance of litigation funding in allowing these class members to vindicate their claims against the commonwealth”.

Referring to the alleged victims in the Pfas class actions, Lee continued: “Without litigation funding, the claims of these group members would not have been litigated in an adversarial way but, rather, they would likely have been placed in the position of being supplicants requesting compensation, in circumstances where they would have been the subject of a significant inequality of arms….

When contacted for a response to the criticism of his submission, Mathias said it was “astonishing that the Guardian would be siding with foreign backed, super-profitable litigation funders just because it does not like the politics of the MRC”.

The 5 June 2020 judgement in question GAVIN SMITH et al v COMMONWEALTH OF AUSTRALIA (DEPARTMENT OF DEFENCE) can be found at https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2020/2020fca0837

*James Mathias Snapshot found on Twitter

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