Outrage as $50m NT Stolen Generations class action results in payouts of just $3,000

Descendants of the Northern Territory Stolen Generations who won a $50.45 million class action settlement are angry to discover some will receive just a few thousand dollars each, or nothing at all.

In 2022, Shine Lawyers successfully argued that the federal government, by causing trauma, suffering and other harm to children forcibly removed under the assimilation policy between 1912 and 1973, had breached its duty of care to them and their siblings and caregivers.

Shine also successfully argued that the spouses and children of members of the Stolen Generations who had died and fell outside the Territories Stolen Generations Redress Scheme should also receive compensation.

The redress scheme only provided compensation for people who were still alive at the time the scheme was introduced in 2021.

Darwin man Brian Long and his brothers heard stories of how their father John was regularly beaten at the Garden Point Catholic mission in the Tiwi Islands after being removed from his home in Ti Tree.

Mr Long said he and his brothers were affected by the damage to their father.

“He didn’t like religion, so the Catholic brothers tried to beat him into it,” he said.

Mr. Long and his siblings took the opportunity presented by the class action to receive compensation on behalf of their parents.

But Mr Long said he was disappointed to now be told by Shine that he would receive around $3,000.

“They made a mess of it, we are re-traumatized for a few thousand dollars for my parents, who lived on that island and were incarcerated for more than 20 years,” he said.

Payouts that cause family disputes

Other children of Stolen Generations members, such as Douglas Shields, have been told they will receive nothing.

“They guided us because we all filled out the forms, and in the last week before the money was going to be disbursed, they told us we didn’t qualify,” Shields said.

Jeanneen McLennan said the settlement department had created disputes between families, with some members eligible and others not.

“Shine’s decision is causing friction between families, and that is not good for our mental health, especially since many descendants of the Stolen Generation have mental health issues,” she said.

Money distributed according to a court-approved schedule

In a statement, Shine Lawyers said it was “aware that some registered representatives are unhappy with the outcome of the suitability assessments”.

But the statement also said Shine had to distribute the money in accordance with the Settlement Distribution Scheme it had established, and that the Supreme Court of New South Wales had approved this.

“The settlement money in this class action will be awarded to the estate of the deceased class member who was a removed child,” the statement said.

Shine said where compensation was awarded to a person’s estate, the subsequent distribution of money “reflects the inheritance laws of the Northern Territory”.

The inheritance laws stipulate that money may go to one person’s executor and not to another person.

But if there is no will, the money is awarded to the person’s spouse, and if they don’t have a spouse, it goes to their children.

“That is why registered children of members of the Stolen Generations are not automatically entitled to settlement money,” Shine’s statement said.

When a Stolen Generations member has multiple heirs or children, Shine said that person’s share will be “divided equally among the registered representatives of that estate.”

‘Everyone completely confused’

Plaintiff Yvonne Dunn, whose parents were abused in Garden Point, said she believed Shine Lawyers had overcomplicated the settlement, making the final payments unfair.

“These categories have completely confused everyone, trying to figure out whether the money is going to caregivers, siblings or children of the deceased parents,” she said.

“Members of our families get $5,000 or $6,000 per parent. You cannot say that this is compensation, that is in fact an insult to the legacies of our parents.

Of the $50.45 million settlement, $11 million went to legal fees and insurance, leaving $39.5 million for the plaintiffs.

Shine Lawyers said the charges had been published and approved in advance by the court.

Federal Minister for Indigenous Australians Malarndirri McCarthy said “the Commonwealth is not involved in managing settlement distribution” but would “keep a close eye on the matter”.

The disgruntled claimants have sought advice from veteran Darwin lawyer John Lawrence SC.

Mr. Lawrence said he wanted the federal government to do more to regulate class actions.

“There is a growing anger among plaintiffs who get involved in class actions and then don’t get much money in return, and yet these class action companies consistently get very high amounts in their fees,” he said.

“So I would like to see a proper investigation into how these class actions are carried out, and I think there should be some form of regulation that ensures that this kind of thing doesn’t happen.”