Taxpayers will foot a $125 million bill after the Victorian government settled a class action brought by thousands of businesses over the financial hit from hotel quarantine failures that sparked the state’s deadly second COVID wave.
At a Supreme Court of Victoria directions hearing on Monday, Adam Hochroth, SC, acting on behalf of the Victorian businesses, said the parties had reached a settlement agreement.
“The terms of the settlement deeds are confidential at this stage, but I can tell your honour that the amount of settlement is $125 million – inclusive of everything, costs interest etc,” he said.
The payout, which will be subject to an approval application in the court, would be one of the largest class actions in Victoria’s history but avoids a three-month trial, which The Age previously revealed was set to cost taxpayers $40 million in legal bills.
It also means former health minister Jenny Mikakos, former minister for jobs Martin Pakula and the former heads of their respective departments, Kym Peake and Simon Phemister, will not have to give evidence.
About 16,000 businesses registered to be part of the class action; the lead plaintiffs were the owners of 5 Boroughs NY, a chain of US-style hamburger joints, including a store in the Melbourne suburb of Keilor Park.
They were claiming costs for the economic damage caused by failures in the state’s hotel quarantine program, which led to the 2020 winter outbreaks that killed 768 people and plunged Melbourne into a 112-day lockdown.
Principal solicitor acting on behalf of the Victorian businesses, Quinn Emanuel partner Damian Scattini, said the agreement was a significant outcome for eligible businesses.
“The $125 million settlement that we have achieved on their behalf is recognition of this hardship, and I hope it provides some measure of relief for eligible businesses,” he said.
If the settlement is approved, funds will be distributed to eligible group members according to a distribution scheme which must also be approved by the court.
More to come
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Daniella White is a state political reporter for The Age. Contact her at da.white@nine.com.auConnect via X or email.From our partners
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: www.smh.com.au
