Judge Approves Black Saturday Settlement [2014] VSC 663
Wednesday 7 January 2015 @ 10.05 a.m. | Legal Research | Torts, Damages & Civil Liability
Victoria’s Supreme Court has approved a $494 million payout to the victims of the deadly 2009 Black Saturday bushfires in the recent decision of Matthews v AusNet Electricity Services Pty Ltd [2014] VSC 663, handed down on 23 December 2014. The case has been considered the biggest class action in Australia’s legal history. It involved over 5,000 people against Victoria’s electricity provider SP AusNet and asset manager Utility Service Group.
Background to the Case
In a follow up to our previous TimeBase article, the most infamous bushfire in Australian history killed 119 people, destroyed 125,000 hectares and more than 1,000 homes in the Kilmore East Kinglake region back in 2009. The Victorian Bushfires Royal Commission later discovered after a series of investigations that the fire was caused by an ageing SP AusNet power line. The defendants have denied liability and fiercely contested the matter over a 16 month civil trial.
The parties arrived at a no-fault settlement for a sum of $494 million back in July of 2014. However the sum still required formal approval by the Supreme Court. This approval was given on the 23 December 2014 by Justice Robert Osborn.
The Plaintiffs’ Case
The victims of the bushfire claimed that AusNet should have replaced the ageing line years earlier because it knew that the line had failed in the past. The bushfire had been instigated after the live line hit a power pole cable stay and ignited nearby vegetation. The victims argued that the power line had failed due to a lightning strike which initiated cracks that made it susceptible to wind stress years earlier.
The plaintiffs insisted that had AusNet replaced the line earlier, the disaster could have been avoided. The victims also insisted that the Victorian government (namely, the Country Fire Authority, DSE and the Victorian police) had failed to give the inhabitants of the area timely warnings.
The Defendant’s Case
AusNet fiercely argued that the cracks in the line were not visible to the naked eyes and that there had been no way for it to foresee the bushfire. AusNet argued vehemently that it had complied with all its legal duties to maintain the power lines. According to Maurice Blackburn senior associate Rory Walsh, who was acting for the plaintiffs, the defendants had thrown all their large monetary and legal resources to defend this point.
The Victorian Government also argued that it was not obliged to tell residents whether to stay or leave on the day of the fire, and had provided adequate warnings.
Osborn’s Approval
In his summary, Supreme Court Justice Robert Osborn said the decision to approve the settlement was taken in part because it would result in substantial compensation for group members. He went on to say that the settlement would offer group members a series of material advantages by the way of finality, minimisation of further stress and anxiety, advancement of payment and containment of costs. He described the settlement as reasonable in nature and that there were no relevant objections demonstrated by evidence or otherwise that the settlement should be rejected.
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