Victorian taxpayers will pay $125 million after the state government settled a class action brought by thousands of businesses over losses linked to failures in the hotel quarantine program that triggered the state’s second COVID-19 wave.
At a Supreme Court of Victoria directions hearing, barrister Adam Hochroth said the parties had reached an agreement, telling the court: “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.”
The payout, one of the largest class actions in Victoria’s history, avoids a planned three-month trial expected to cost taxpayers $40 million in legal fees.
The settlement also means former health minister Jenny Mikakos, former jobs minister Martin Pakula, and former department heads Kym Peake and Simon Phemister will not have to give evidence.
Around 16,000 businesses registered for the class action, led by the owners of the 5 Boroughs NY burger chain, who claimed economic damage from the quarantine failures that led to the 2020 winter outbreak, which killed 768 people and forced Melbourne into a 112-day lockdown.
Lawyer Damian Scattini said: “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.”
If approved by the court, the funds will be distributed to eligible businesses under a court-approved scheme.
Source: The Age.
