A litigation funder is set to receive one-sixth of a $180 million settlement in a landmark Northern Territory stolen wages class action, while the affected Aboriginal workers will each receive a minimum of $10,000.
In addition to the main settlement, law firm Shine Lawyers will collect up to $15 million in legal fees after a Federal Court judge criticised the firm for deploying what she called an “excessive” number of staff on the case.
The class action, led by Minnie McDonald, was launched in 2021 against the Commonwealth on behalf of thousands of Aboriginal workers who, between 1933 and 1971, were unpaid or underpaid while working on missions, pastoral stations, and other sites across the NT.
Back in January, the court directed that the estimated 1,000 surviving claimants be prioritised for compensation before payments are made to their descendants.
In approving the settlement on Thursday, Chief Justice Debra Mortimer said while the outcome didn’t need to be “perfect or generous,” it was a fair and reasonable result given the uncertainty and risks of pursuing a trial.
Court Critical of Legal Costs
A report from cost referee Elizabeth Harris, cited in the judgment, noted that more than 100 Shine staff had worked on the class action — the largest team she’d seen involved in a case of this kind.
Chief Justice Mortimer found that Shine’s decision to rely so heavily on its own resources, rather than engaging local, experienced organisations to connect with claimants, made the outreach and registration process unnecessarily expensive.
“There’s no evidence Shine explored whether local First Nations organisations or regional services in the NT could have supported their work,” the judge said, rejecting an additional $8 million costs claim from the firm.
Litigation Funder’s Role
The court acknowledged that litigation funder LLS Fund Services — set to receive $30 million — operated as a commercial business and that its involvement helped to reduce the financial risk for claimants.
“The sums individuals will receive are modest, and the court recognises the deep sense of injustice still felt in NT communities over the treatment of Aboriginal and Torres Strait Islander people during this period,” Chief Justice Mortimer said.
But she noted that given the risks of proceeding to trial, along with likely years of drawn-out litigation and appeals, the settlement represented a pragmatic resolution.
‘Frustration and Inequity’
While Chief Justice Mortimer accepted the intentions of Shine Lawyers and the funder to deliver a positive outcome, she criticised the way city-based, non-Indigenous legal teams conducted outreach in remote communities, often meeting people for the first time over distressing issues and then departing.
She said many claimants would likely feel frustrated and confused at seeing city lawyers and funders walk away with large payments while they and their families received relatively small sums.
“I doubt they would view this as social justice,” she remarked.
A spokesperson for Shine Lawyers responded by saying, “We respect the Court’s judgment and will carefully consider her Honour’s comments when planning future outreach programs.”
