$500million payout for 'Black Saturday' bushfires

A "Black Saturday" wildfire threatens the township of Taggety in Victoria. Photo / Getty Images
A "Black Saturday" wildfire threatens the township of Taggety in Victoria. Photo / Getty Images

Survivors of a devastating 2009 bushfire in Australia have won a payout of nearly A$500 million in the biggest class action settlement in the nation's history.

The Kilmore East blaze was the largest of the "Black Saturday" February 2009 wildfires in southern Victoria state that left 173 dead and razed more than 2000 homes, Australia's worst natural disaster in modern times.

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More than 10,000 people, including relatives of those who died, joined the action against SP AusNet, which is majority owned by Singapore Power, over the Kilmore fire, and won a settlement of nearly A$500m (NZ$533m).

Lead plaintiff Carol Matthews, whose son Sam burned to death, claimed the power company's faulty equipment ignited the blaze with lawyers saying the resulting fire, which razed 125,000 hectares, was "entirely preventable".

A family shelters from a bushfire under a jetty in Tasmania. Photo / ABC

SP AusNet said in a statement the settlement was reached without admission of liability by the company or any other party. The group also sued Utility Services Corporation Limited, which was contracted by SP AusNet to maintain the line, and the Department of Sustainability and Environment for allegedly failing to reduce fuel loads.

"The conductor which broke and which initiated the fire was damaged by lightning, compromising its fail-safety design in a manner which was undetectable at that time," SP AusNet said.

Research estimates bushfires are now 80 times more destructive than a century ago. Photo / NSWRFS

"This point was accepted by experts called by all parties who provided evidence in relation to the conductor break.

"It is a tragedy that the conductor eventually failed on one of the worst days imaginable," it added.

Maurice Blackburn lawyers said the payout was more than double the previous highest Australian class action settlement of A$200m (NZ$213).


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