Victorian Government Settles Lockdown Class Action for $125 Million
The Victorian government has agreed to pay $125 million to businesses impacted by one of the world's longest Covid-19 lockdowns, settling a class action that argued the state should compensate for economic losses. The settlement was announced in the Supreme Court of Melbourne, avoiding a protracted trial that was scheduled to begin on 10 March.
Details of the Class Action and Settlement
A class action was filed in the Supreme Court on behalf of retail businesses, including lead plaintiff 5 Boroughs NY Pty Ltd, which claimed financial harm due to Victoria's 2020 lockdowns. The businesses contended that government restrictions from July to October prevented customers from visiting physical stores, leading to significant economic damage. Barrister Adam Hochroth SC, representing the class action, informed the court that the parties had reached a confidential settlement, with the total amount set at $125 million, inclusive of costs and interest.
The settlement must receive formal court approval before funds can be distributed to eligible businesses. The application for approval has been adjourned to a date to be fixed, pending further legal proceedings.
Government Response and Legal Implications
Outside the court, a Victorian government spokesperson confirmed the settlement, stating that the state continues to stand by the measures it implemented during the pandemic to ensure public safety. The spokesperson emphasized that the $125 million agreement aims to avoid additional lengthy legal battles, reflecting a pragmatic approach to resolving the dispute. The law firm Quinn Emanuel Urquhart & Sullivan, which handled the class action, described the settlement as a significant outcome for affected businesses, acknowledging the hardship faced during the 2020 lockdown period.
Partner Damian Scattini noted in a statement that the settlement represents recognition of the challenges endured by Victorian retailers and hopes it provides some relief. This case highlights ongoing debates over government accountability and compensation for pandemic-related economic disruptions, setting a potential precedent for similar claims in other jurisdictions.
