Other · Class Actions / Representative Proceedings

Settlement distribution scheme (with safeguards for technology-assisted claims assessment)

An original settlement distribution scheme for court approval: administrator, settlement fund, approved deductions, registration and eligibility, loss assessment, review rights, distribution, reporting, and safeguards where software or AI helps assess claims.

Kind
Other. A precedent that fits none of the other kinds.
Where it applies
Australia, New South Wales, Victoria
AI use
Red Keep AI out of the decisive steps. A lawyer does the work.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use when seeking court approval of a class action settlement under s 33V of the Federal Court of Australia Act 1976 (Cth) or the state equivalents. The scheme must fit the deed of settlement and the court's orders. Do not use where the settlement provides fixed payments with no assessment.

How AI may be used

Lawyer-led and court-supervised. Software or AI may help extract data and calculate entitlements under the approved formula, but every adverse or reduced assessment is reviewed by a person, the method is disclosed to the court, and group members can seek review.

AI may

  • Extract data from claim forms and supporting documents into the assessment database
  • Apply the court-approved formula to verified data and show the calculation
  • Flag duplicates, missing documents and outliers for human review

AI must not

  • Must not reject or reduce a claim without human review
  • Must not apply criteria other than those in the approved scheme
  • Must not use group member data for any purpose other than administering the scheme or in a tool that trains on it

The lawyer checks

  • The scheme is consistent with the deed and the approval orders
  • Any technology-assisted assessment has been disclosed to the court and validated
  • Notices of assessment give reasons and review rights
  • Reports to the court are accurate and on time

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

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