Australia firestorm victims settle court case

AUSTRALIA: A multimillion-dollar settlement was reached in an Australian court Monday over one of the so-called Black Saturday wildfires which killed 173 people and destroyed thousands of homes in early 2009.

Justice David Beach ordered electricity company Powercor to compensate victims of the Horsham blaze for 55 percent of their losses plus interest, in a deal local media said was worth up to Aus$40 million (US$40.9 million).

It is the first in a series of class actions over the February 2009 firestorm, Australia’s deadliest natural disaster of modern times, and the result is being closely watched by lawyers working on similar cases.

The Horsham blaze destroyed 13 homes and a golf club, along with many farm buildings and other structures, Beach said in his settlement judgement in the Supreme Court of Victoria.

“Over about eight hours, the fire burnt approximately 2,500 hectares,” Beach said. “There was widespread loss of crops, pastures, livestock, yards, fences, trees, smaller vegetation and farm and other equipment.”

Beach said the fire was sparked by one of Powercor’s live power conductors coming into contact with vegetation, and victims had sued the company for “negligence, nuisance and breach of duty”.

Because it is an open action the total number of people who will be able to claim compensation from Powercor is yet to be finalised, but it is expected to be in the hundreds. Victims will be allowed to claim for lost fencing, equipment, livestock, trees and plants, and labour and other costs. Lost livestock trading profits will also be compensated, along with all structural repairs and replacements.

Powercor refused to accept legal liability as a condition of the settlement but agreed that the fire had started after a live power line fell into grass on the property of Laurie Thomas, the lead litigant in the case.

AFP