McDonald v Commonwealth of Australia

In McDonald v Commonwealth of Australia, the Federal Court of Australia was called upon to approve a settlement of a representative proceeding concerning the non-payment or under-payment of wages to Aboriginal and Torres Strait Islander workers in the Northern Territory between 1933 and 1971. The case involved numerous legal issues, including whether the settlement was fair and reasonable, whether proposed deductions were justifiable, and the appropriate priority of payments. The court also had to consider the outreach program for notifying potential claimants, ensuring best practice principles were followed, including the use of culturally appropriate advisers and interpreters.

The court's reasoning centred on evaluating the fairness of the settlement sum, the reasonableness of proposed deductions for legal costs and funding commissions, and the necessity of the outreach program to effectively notify potential claimants. The court emphasised the importance of ensuring that the settlement was both fair and reasonable for the affected group members and that the outreach program adhered to best practice principles. The court approved the settlement, noting the shameful historical context of the alleged exploitation of Aboriginal and Torres Strait Islander workers. The court also directed the parties to address any potential miscalculations in the settlement figures and to propose a joint solution.

The final orders included approval of the settlement sum of up to $180 million, reimbursement payments to certain individuals, and a cap on the funder's commission. The court also authorised interim payments to living eligible claimants and set out a process for determining future legal costs. Additionally, the court fixed the registration date for claimants and outlined the steps for the outreach program, including dissemination through various communication channels and languages. The court further directed the parties to address any miscalculations in the settlement figures and to propose a joint solution, with mediation as a fallback option.