Australian fire survivors win S$580m in damages

SYDNEY — Survivors of one of Australia’s deadliest wildfires will receive compensation of nearly A$500 million (S$580 million) in a class action settlement reached yesterday, the largest such compensation in Australian legal history.

The Kilmore East-Kinglake bushfire in February 2009 claimed 119 lives, destroyed 1,200 homes and caused an estimated A$1 billion worth of damage. It was part of a series of blazes across Victoria that became known as Black Saturday and killed 173 people.

More than 5,000 people joined the class action against Singapore-listed electricity provider SP AusNet, arguing that the company was negligent because it had not maintained its power lines, which sparked the fire. The group also sued Utility Services Corporation, which SP AusNet hired to maintain the lines, and the Victorian government.

SP AusNet is majority owned by Singapore Power, itself wholly owned by Temasek Holdings.

Yesterday, after a 16-month trial in the Supreme Court of Victoria, the defendants agreed to pay a total of AU$494.7 million. SP AusNet will pay the bulk of the compensation — A$378.6 million. Utility Services will pay A$12.5 million and Victorian state parties, including Victoria Police, the Country Fire Authority and the Department of Sustainability and Environment, will pay A$103.6 million.

Mr Andrew Watson, the lawyer who represented the plaintiffs, said the settlement still needs final court approval. It will then take 12 to 18 months to distribute the payouts.

“No amount of money will ever compensate those who were affected by the fire for the losses they have suffered,” he said. “But this settlement ... represents a measure of justice and some real compensation that will ease the financial burden of their suffering.”

SP AusNet said it had agreed to the settlement, but had not admitted liability. The company said the conductor that broke and sparked the fire had been damaged by lightning.

Australia is the driest inhabited landmass on earth and is particularly prone to deadly wildfires, most often over the southern summer. AGENCIES