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Case Developments Commercial

Montero Agrees to Distribution of US$27 Million Settlement from Tanzania

By Harry Moran |

Montero Mining and Exploration Ltd. (TSX-V: MON) (“Montero” or the “Company”) announces that it has finalised the distribution of the US$27,000,000 settlement with its litigation funders, Omni Bridgeway (Canada). The settlement amount was agreed with the United Republic of Tanzania (“Tanzania”) in the dispute over the expropriation of Montero’s Wigu Hill rare earth element project (“Wigu Hill”).

The settlement amount of US$27,000,000 is payable over three instalments, and is to be distributed as follows:

  • First payment: US$12,000,000 received on November 20, 2024, and distributed between Montero and Omni Bridgeway (Canada), the Company’s litigation funder.
  • Second payment: US$8,000,000 due by January 31, 2025, to be distributed to Montero and to pay all legal fees.
  • Third payment: US$7,000,000 due by February 28, 2025, to be distributed entirely to Montero.

After paying funders and legal costs, the net amount due to Montero will be approximately C$20,577,545 (US$14,458,138).

Dr Tony Harwood, President and CEO of Montero commented: “I am pleased Montero successfully achieved an amicable distribution of proceeds of over C$20,000,000. We wish Tanzania success in attracting new mining investments and look forward to receiving the final two payments due within the next 5 weeks. Further notice of payments received will be forthcoming.”

ICSID Arbitration

Montero and Tanzania jointly requested the arbitral tribunal to suspend the ICSID arbitration proceedings after receiving the first payment. Upon receipt of the final payment as scheduled, the parties will formally request the tribunal to discontinue the ICSID arbitration in its entirety.

Distribution of Funds

Montero is considering a return of capital distribution to shareholders. The exact amount is yet to be determined and will be subject to accounting review and board approval. In addition, Montero will retain funds to cover legal, taxation, and administrative expenses, including potential costs for arbitral proceedings, or enforcement actions in the event of delays or non-payment of the second or third instalments. The latter will now be the sole responsibility of Montero. The net amount of the award after deducting payments to the funder and covering legal expenses, cannot be determined with certainty, and no guarantees can be provided. Further announcements will be made in due course.

Disclaimer

The conclusion of the ICSID arbitration and payment of the remaining instalments is conditional on Tanzania’s compliance with the settlement agreement. The agreement does not provide for any security for the benefit of Montero in case Tanzania would not pay any instalment, in which case Montero can either resume the ICSID arbitration or seek enforcement of the settlement agreement.

About Montero

Montero has agreed to a US$27,000,000 settlement amount to end its dispute with the United Republic of Tanzania for the expropriation of the Wigu Hill rare earth element project. The Company is also advancing the Avispa copper-molybdenum project in Chile and is seeking a joint venture partner. Montero’s board of directors and management have an impressive track record of successfully discovering and advancing precious metal and copper projects. Montero trades on the TSX Venture Exchange under the symbol MON and has 50,122,975 shares outstanding.

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Harry Moran

Harry Moran

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Case Developments Commercial

$170 Million Settlement Approved in Allianz Class Action

By Harry Moran |

A complex Australian class action that emerged through the consolidation of two separate group proceedings has reached a successful conclusion, with the court approving a large settlement and thereby marking a significant win for the litigation funder who backed the case. 

A post on LinkedIn from Balance Legal Capital highlighted the approval of the settlement in the Allianz class action, with the Supreme Court of Victoria approving the A$170 million sum to bring the group proceedings to a close. The class action, which Balance Legal Capital funded, was brought on behalf of over 200,000 Australian customers who purchased a vehicle and were then sold Allianz or Allianz Life “add-on” insurance products by the dealership, alleging that the insurers engaged in misleading or deceptive conduct.

Johnson Winter Slattery (JWS) and Maurice Blackburn Lawyers jointly represented the plaintiffs in the class action. In 2021, the Court had ordered the consolidation of this group proceeding with a similar class action against Allianz, resulting in two representative plaintiffs: Ms Tracy-Ann Fuller and Mr Wilkinson.

The judgment approving the proposed settlement was made today, with the court approving a $30,000 payment to the two plaintiffs. The court also maintained the Group Costs Order (GCO) of 25% of the settlement, with a $42.5 million payment set to be divided between JWS and Maurice Blackburn, with a further sum of up to $4.72 million allocated to Maurice Blackburn for the administering of the settlement distribution scheme. 

On the costs incurred by the law firms, Justice Matthews wrote that they were, “satisfied that the costs are reasonable and proportionate to the issues in dispute and the overall amount in dispute.” The judge went on to highlight that the class action “was a very large and complex proceeding and it is unsurprising that the costs are substantial.”

The full judgment and settlement approval orders can be read here. More information about the case can be found on the Allianz Class Action website.

Case Developments Commercial

Judge Halves Funder’s Legal Costs in Mastercard Case

By Harry Moran |

The dispute between Walter Merricks and Innsworth Capital in the Mastercard claim has been one of the most visible examples of a rift between a class representative and litigation funder. 

An article in The Law Society Gazette provides an update on the ongoing fallout from the settlement in the Mastercard litigation, as the acting president of the Competition Appeal Tribunal (CAT) has described the funder’s legal costs of over £52,000 as “wholly disproportionate and unreasonable”. These comments came in a ruling on costs that Mr Justice Roth had ordered the class representative to pay, relating to the funder’s legal costs for responding to Mr Merricks’ application for a court order (‘Documents Application) that would have prevented the funder from using confidential documents in its intervention.

In his assessment of Innsworth’s submissions on costs, the judge accepted that the funder’s need to oppose the Documents Application was “critical to its ability to participate effectively in opposing the CSAO Application” and went on to say that he had “no criticism of the time spent by the solicitors.” However, Justice Roth did highlight the decision to instruct “both leading and junior counsel to advise on the response” and the fact that in this matter, “Akin Gump is charging at well over double, and in the case of the Grade B solicitor almost three times, the London 1 Guideline Rates.”

The ruling goes on to note that whilst Innsworth “may choose to agree with its solicitors to pay a much higher rate of fees”, it does not automatically follow “that costs incurred at those rates are recoverable from the other side”. Determining the final costs, Justice Roth settled on a reduction of the solicitors’ fees down from £26,355.50 to £12,000, and similarly reduced the counsel fees to £10,000, which he still described as “generous”. As a result, the final sum for Innsworth’s costs was set at £22,000.

The full ruling from Mr Justice Roth can be read here.

Case Developments Commercial

$3.5M Settlement Approved in Class Action Against Melissa Caddick’s Auditors 

By Harry Moran |

A class action brought in the Federal Court of Australia has reached a resolution less than two years after it began, as a settlement has been approved between investors and the former auditors of a deceased fraudster.

Reporting by The Canberra Times covers a $3.5 million settlement in the class action brought against the auditors that were engaged by Melissa Caddick, an Australian financial adviser who defrauded investors prior to her disappearance and death in November, 2020. The settlement is the latest money recouped by Caddick’s investors, having already received $7.25 million following the sale of her assets by liquidators between 2023 and 2024. The class action targeted Caddick’s auditors on allegations that they had failed in their duties to audit their client’s self-managed superannuation funds, and had breached the Corporations Act.

The class action had been launched in September 2023 with Mackay Chapman representing 32 of Caddick’s former investors, with litigation funder Therium providing the financing for the lawsuit. Following the approval of the $3.5 million settlement by Federal court Justice Brigitte Markovic, Mackay Chapman will receive around $1 million in legal costs whilst Therium will be allocated a funding commission of $492,000. After disbursement costs, the claimants will receive the remaining $1.73 million from the settlement.

Michael Chapman, director at Mackay Chapman, described the settlement as “a great outcome for the group members”, and that his firm’s legal costs were recouped at discount to ensure that 50 per cent of the overall settlement was returned to the investors. 

The settlement agreement did not contain any admission of liability by the auditors. The full settlement approval order with additional details on the disbursement of funds can be read here.