Background
The Court had approved settlement of this representative proceeding in November 2024. Under the settlement deed and distribution scheme, an administrator was to distribute the net amount of a court-approved $180 million settlement fund to eligible claimants or their descendants. The underlying claim concerned events occurring between 1933 and 1971.
The settlement administration encountered delays. Concerns were raised that some potential claimants did not know of the scheme, could not register, or had encountered registration difficulties. The administrator also faced incomplete or inconsistent claimant information, including missing documents, bank details, addresses, and next-of-kin details for eligible claimants who had died.
The Court’s Holding
Chief Justice Mortimer, by consent, extended the Administration Finalisation Date to 25 January 2027, with no order as to costs. The deadline had previously been extended to 24 July 2026, but the administration remained incomplete.
The Court held that an extension was appropriate in the interests of justice. It would allow the administrator to pursue outstanding payments, obtain necessary claimant details, allow time for uncashed cheques to be deposited, and assist the parties in considering possible further amendments to the scheme for people who had not participated.
The Court stressed the need to balance reaching as many potential claimants as possible against finality. It also expressed concern that more proactive engagement with the North Australian Aboriginal Justice Agency might have reduced communication and compliance difficulties, while recognising the practical challenges of administering a large settlement involving First Nations people in remote areas.
Key Takeaways
- The Court extended the settlement administration deadline to 25 January 2027.
- Outstanding payments and unresolved claimant information justified further time to complete the scheme.
- The reasons emphasise proactive, effective engagement with community organisations in remote-area First Nations settlements.
Why It Matters
The decision illustrates the Court’s continuing supervisory role after approving a class-action settlement. Administrative deadlines may be extended where doing so meaningfully improves eligible claimants’ opportunity to receive compensation.
It also signals that administrators of large-scale settlements should maintain practical, direct communication channels with affected communities and relevant local organisations, while completing the process without unnecessary delay.