 |
| Victims of Brisbane's devastating 2011 floods could find some relief in a class action, but the State Government coffers will take a hit if it's successful. |
AN EMERGENCY pot of taxpayers' money set aside for the ultimate rainy day could be plundered by a class action over the 2011 floods.
The firm financing one of the nation's largest-ever class actions says the claim could top $1 billion - enough to exhaust the state's emergency insurance reserves.
But the State Government has refused to speculate on its course of action as lawyers begin a legal battle that could take years and cost tens of millions.
Litigation funders IMF - who will receive up to a third of any payout - and law firm Maurice Blackburn moved yesterday to drum up clients, releasing fresh flood maps they claim show entire suburbs should have been spared damage but for the negligence of the dam operators.
They will start leaflet drops in affected areas immediately, hoping to get more support for the action set to be filed within months.
John Walker of IMF said the claim potentially could exceed $1 billion, and called on insurers to join in the case against the state government.
Two thousand owners of homes and businesses that were uninsured or underinsured have signed up.
Treasury confirmed there was about $900 million in the Queensland Government Insurance Fund, used to cover loss or damage to state assets and legal liabilities brought against the government.
Mr Walker said Seqwater had a further $200 million worth of public liability cover.
Seqwater declined to comment on its insurance.
An Seqwater spokesman said it had "always been confident that Wivenhoe Dam was managed as it was supposed to be managed and the dam performed as it was designed to".
Premier Campbell Newman said the Maurice Blackburn announcement had not been unexpected.
22.1.13
