22 January 2013

Lawsuit could see 2011 flood litigants battle for up to four years

PROTECTION: The flood inquiry heard there
 are no penalties for dam operators
 who do not follow the rules of
 the Wivenhoe Dam
operations manual.

IT'S a complex case, with potential complications, that raises plenty of questions. Here we answer some about the class action and how it is likely to proceed.

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Q. How long will a lawsuit take?

A. Up to four years, says litigation funder IMF. Complexities about where the suit can be brought may cause delays.



Q. What is the onus of proof?

A. Lawyers from Maurice Blackburn will have to show that the dam operators violated accepted standards of professional behaviour, that they acted negligently and that there was consequential loss. It is expected that the dam engineers will be named in the suit. Civil cases are decided on the balance of probabilities. Large class actions are most often settled out of court.



Q. What is the effect of the Flood Commission of Inquiry findings?

A. Maurice Blackburn says the inquiry had completely different terms of reference, although it produced a huge repository of evidence that has helped lawyers frame the suit. The firm said the Crime and Misconduct Commission investigation of dam engineers over perjury claims also had different terms of reference.



Q. What is the difference to people's lives?

A. A civil action would thoroughly test allegations raised in the flood inquiry and the media about the management of the state's dams and potentially highlight failings that have still not been remedied.



Q. How much are taxpayers up for?

A. The litigants have flagged that the suit could seek as much as $1 billion. Most of this would be covered by existing state government reserves and Seqwater's liability insurance, but those reserves would then have to be replenished and would not be available for other purposes. Seqwater's insurance premiums have already increased significantly.



Q. What percentage will the law firm take for its work?

A. The law firm will not receive a percentage of any payout, it is being paid its legal fees by IMF.



22.1.13