Judge critical of $45m legal fees in stolen wages court case

A judge has criticised a law firm for its failure to engage with local Indigenous organisations in a landmark class action case over low or no wages for Aboriginal workers in the Northern Territory.

The case saw the Federal Court approve a $180m in settlement on behalf of the workers over a period from 1933 to 1971.

But the claimants are likely to receive only about $10,000 each with the bulk of the award going to litigation funders and Shine Lawyers.

LLS Fund Services will receive $30 million and Shine $15m from taxpayer funded sources.

Chief Justice Debra Mortimer, who ruled the law firm had applied “an excessive level of human resources” to the case, said Shine had elected to plan what she considered was the “most expensive way that the outreach and registration process and the book build could have been undertaken.”

“There is no evidence Shine investigated whether resources might be available within the First Nations communities where group members live, or regionally within parts of the Northern Territory, to engage with group members,” Chief Justice Mortimer said.

“The court acknowledges that the sums that individuals may receive do not seem very large.

“The court understands the strong sense of injustice and unfairness that is felt in Northern Territory communities about the way Aboriginal and Torres Strait Islander people were treated when they worked during this period, often in terrible conditions and while suffering a number of other deprivations and restrictions.

“However, the overall settlement is what the court has to focus on, as well as the court’s assessment that a positive outcome at a trial was very uncertain and risky, and would have probably taken many, many years to get through the whole court process, including appeals.”

Chief Justice Mortimer added that many of the claimants would be “frustrated, and likely mystified about how city-based, non-Indigenous participants in this proceeding come out with so much money compared to their family and friends”.

“I doubt they would see much social justice in this outcome,” she added.

Shine Lawyers responded in a statement: “We respect the Court’s judgment and will take on board her Honour’s comments in the planning of the outreach program.”

Minnie McDonald, the lead claimant, began action against the Commonwealth in 2021 on behalf of thousands of Aboriginal workers who worked for little or no pay on pastoral stations, missions and other workplaces in the NT between 1933 and 1971.

There are estimated to be about 1000 workers still alive who are impacted by the action.