Black Saturday bushfire victims quiz Maurice Blackburn on payouts

Law firm Maurice Blackburn has been forced to answer questions over a landmark $494 million settlement that is overdue.

Victoria’s Black Saturday bushfire survivors, Vicki Ruhr, left, Suzi Kerr and David Spooner outside the Supreme Court in Melbourne. Picture: Stuart McEvoy

Law firm Maurice Blackburn has been forced to answer questions from victims of the 2009 Black Saturday bushfires over its handling of a landmark $494 million settlement that is overdue and months from being paid out.

Simmering concerns about management of the vast sum — the largest in Australia’s class-­action history — were aired in the Victorian ­Supreme Court yesterday as a group of survivors of the Kilmore East-Kinglake blaze put forward a detailed list of issues to judge Jack Forrest,

Settlement for that class ­action — which involved a fire sparked by a fallen powerline, that killed 119 — was ­approved in December 2014, but no payments are likely until this year or early next year, with some victims’ claims yet to be assessed.

Maurice Blackburn is similarly administering the $300m payout for the Murrindindi-Marysville bushfire class action, which settled­ in February last year and was approved three months later.

Yesterday, Kinglake survivor Vicki Ruhr called for information about record dividends paid to Maurice Blackburn’s equity partners as the settlement money started to flow in. She also asked for an independent auditor’s ­report on the firm’s administration costs to be made public, and questioned why an interim payment could not be made to those whose claims had been assessed.

“The bulk of them I think are questions that need to be ­answered,” Justice Forrest said, thanking Ms Ruhr. “It seems to me that a number of them were highly relevant to the way the scheme is administered.”

Maurice Blackburn’s class-­action head Andrew Watson said it was still possible victims might receive payments before the end of this year if certain timelines were met. “Rest assured, we are, and I am, particularly conscious of the need to ensure the payment is effected in the most timely manner possible,” said Mr Watson, who is charged with administering the settlement schemes.

He said that while 78 people would share in $2m after successfully requesting an interim payment based on extraordinary need or compassionate grounds, a broader interim payment to victims would “distract” his team.

Maurice Blackburn has so far reaped nearly $100m in fees from the class actions. Justice Forrest yesterday authorised a further $4.8m to be paid for work carried out since February this year.

Strathewen survivor Denis Spooner told the court he had been forced to “jump through hoops” to receive a hardship payment from the scheme and he ­believed Mr Watson had “abused his power” as administrator.

Ms Ruhr said some of the class-action members felt “almost ostracised”, disappointed and distressed by the way the scheme had been handled and the lack of information.

A further hearing has been scheduled for September.