Victorian taxpayers stung $125 million to cover payout after legal settlement
Taxpayers will face a $125 million bill after the Victorian government settled a class-action lawsuit brought by thousands of businesses over the financial blow from hotel quarantine failures that sparked the state’s deadly second wave of Covid-19.
At a directions hearing in the Supreme Court of Victoria on Monday, Adam Hochroth, SC, acting for Victorian businesses, said the parties had reached a settlement agreement.
“The terms of the settlement deeds are confidential at this stage, but your honor, I can tell you that the settlement amount is $125 million, including everything, interest, etc.,” he said.
The payment, which will be subject to an application for approval in court, will be one of the largest class actions in Victorian history, but will also avoid a three-month trial. Age It was determined that this previously announced situation would cost taxpayers $40 million in legal bills.
It also means former health minister Jenny Mikakos, former business minister Martin Pakula and former heads of relevant departments Kym Peake and Simon Phemister will not have to give evidence.
Nearly 16,000 businesses have registered to join the class action lawsuit; The lead plaintiffs were the owners of 5 Boroughs NY, a US-style chain of hamburger joints, including a store in the Melbourne suburb of Keilor Park.
They were seeking costs for economic damage caused by failures in the state’s hotel quarantine program; This led to the 2020 winter outbreaks that killed 768 people and sent Melbourne into a 112-day lockdown.
Lead solicitor Quinn Emanuel partner Damian Scattini, acting on behalf of Victorian businesses, said the agreement was a significant result for eligible businesses.
“The $125 million settlement we obtained on their behalf is an acknowledgment of this challenge and hopefully provides some relief to eligible businesses,” he said.
If the agreement is approved, the funds will be distributed to eligible group members according to a distribution plan that must also be approved by the court.
More to come
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Daniella White is The Age’s state political correspondent. Contact her at da.white@nine.com.auConnect with: X or email.
