In New Zealand, a group can bring litigation by way of representative action under the High Court Rules. High Court Rule 4.24 provides that one or more persons may sue on behalf of, or for the benefit of, all persons “with the same interest in the subject matter of a proceeding” either with the consent of the represented parties or with court approval. The courts have permitted plaintiffs to use this mechanism to commence class actions.
The New Zealand courts have shown themselves to be open to class actions, facilitating them as far as possible. There is a relatively low threshold for obtaining a representative order under High Court Rule 4.24, and the courts are prepared to determine common issues using this procedure, leaving individual issues such as causation, reliance and loss to be dealt with at a later stage.
In New Zealand - Respondents can ask for a lien to be placed on the plaintiffs assets to cover costs in case the plaintiffs action fails. Plaintiffs in a class action are jointly and severally liable for costs if the action fails.
