Push to force Black Saturday bushfire lawyers to pay up

Maurice Blackburn flayed over delays in the distribution of class action proceeds to Black Saturday survivors.

Law firm Maurice Blackburn has been flayed by both sides of politics over delays in the distribution of class action proceeds to Black Saturday survivors, with a Victorian government MP calling on Premier Daniel Andrews to force the company to make immediate payments.

It comes as state opposition justice spokesman John Pesutto said it was “appalling” that survivors had not received their share of the $1 billion in proceeds from the two major class actions over the 2009 fires.

Controversy has erupted over revelations that while nothing has been paid to the survivors, Maurice Blackburn equity partners have received $16 million in dividends.

Mr Pesutto joined ALP backbencher Adem Somyurek in calling for Mr Andrews to intervene in the standoff between the plaintiff law firm and its wealthy partners and the bushfire survivors that make up the plaintiff group.

“After nearly $1bn was spent settling the two significant class actions in 2014 and 2015, it is ­appalling that survivors have not received their compensation and may have to wait another year,’’ Mr Pesutto said.

“If Maurice Blackburn are ­really serious about social justice, they will make sure survivors ­urgently get their compensation.

“If they can’t guarantee ­immediate payment, then given a substantial amount of compensation came from taxpayers, ­Daniel Andrews must intervene to make sure compensation is quickly distributed.”

The government ­refused to buy into the controversy surrounding the Labor-aligned law firm yesterday, with a government spokeswoman saying only “our thoughts are with people and communities affected by the Black Saturday bushfires’’.

Mr Somyurek described the firm’s partners as “multi-millionaire professional parasites on misery” in an attack in parliament recently.

Mr Somyurek, who has been critical of the firm over its role in representing a factional opponent of his who made disputed bullying claims against him, said he was shocked to learn of the delay in payment to survivors and it should outrage the public.

“The payments of $500 million have been sitting in the Maurice Blackburn trust account since late last year, yet Maurice Blackburn has distressed the poor, unfortunate victims all over again by telling them not to expect their money until next year,’’ he told the Victorian parliament.

“Maurice Blackburn cannot sit on this pile of money, which is ­accruing interest every day, enabling it to bill ever-increasing amounts against the case, without incurring the justified anger of all Victorians.

“I hereby call on the Premier to remind Maurice Blackburn of its ethical and moral responsibility to make immediate payments to the bushfire victims it claimed to represent and investigate any sanction that can be applied to this greedy and parasitic law firm should it fail to pay up.’’

Maurice Blackburn spokesman Cameron Scott said the judge who presided over the Kilmore East-Kilmore class action, Jack Forrest, had ­endorsed the firm’s work and progress in the settlement. “In an environment where ­no one else was willing to step into the breach and take the huge risks required to stand up for bushfire survivors and represent their interests, Maurice Blackburn did. We remain committed to helping them by getting the distribution done correctly, in as quick a time as possible.’’