"It's very disappointing for our participants. I feel offended on their behalf," Judge Henwood told Radio New Zealand.
The Ministry has been handling the complaints.
Tolley told Morning Report today, the Ministry was designing a care and protection service and had settled more than 700 of the 1100 claims.
She said about 3.5 per cent of children in state care had made claims, most of which required an apology and compensation, not an inquiry.
"If we start now for a major inquiry, then they have to relive that all again. Why would we put them through that?
"There's no evidence that it was a systemic problem," Ms Tolley said on Morning Report.
Judge Henwood, however, disagreed asking how Tolley determined this number if there had been no inquiry.
"They can't see it. They don't want to see it and they always want to be in the right. With that kind of attitude at the top of the government department it doesn't bode well for the future," Judge Henwood said.
Tolley said some of the claimants had "good experiences" in state care.