Court Rules Against 28,000 Irrigators in $1.5 Billion Class Action

A New South Wales Supreme Court judge has delivered a significant blow to 28,000 irrigators, ruling against their $1.5 billion class action lawsuit targeting the Murray-Darling Basin Authority (MDBA). The court determined that the MDBA did not owe a duty of care that would protect one group of irrigators from economic losses over others.

The plaintiffs argued that mismanagement of river operations led to reduced water allocations, loss of profits, and inflated temporary water prices, which hindered some farmers from fulfilling supply contracts. However, Justice Tim Faulkner ruled that the MDBA's role as an independent body, responsible for implementing water-sharing agreements among states, precluded it from being liable to specific irrigators.

Southern Riverina Irrigators chief executive Sophie Baldwin expressed disappointment over the decision but suggested that the case's implications were not entirely negative. She noted that the legal battle had shed light on significant issues regarding water management, particularly regarding transmission losses during overbank flows.

The class action, which sought damages between $750 million and $1.5 billion, focused on the management around the Barmah Choke, a constricted section of the Murray River. The plaintiffs contended that the MDBA's operational decisions from 2017 to 2019 were flawed and unjustifiably led to flooding in the Barmah-Millewa forest, resulting in substantial water loss.

Justice Faulkner noted that the MDBA's decisions were guided by operational experience and modeling, asserting that the authority's duty to protect the interests of individual irrigators would compromise its independence. While the MDBA acknowledged the court's ruling, it refrained from commenting further, citing ongoing appeal options.

Source: www.abc.net.au