The federal government has reached a $22 million settlement over PFAS contamination from firefighting foam with the Wreck Bay Aboriginal community on the New South Wales South Coast.
Last week the Commonwealth was accused of not listening to the First Nation's community after it was singled out as the only group from eight applicants not to secure a payment in the $132.7 million multi-site PFAS contamination settlement with the Department of Defence.
The residents of Wreck Bay alleged Defence negligently allowed perfluoroalkyl and polyfluoroalkyl (PFAS) chemicals to leech into surface water, groundwater, and soil.
The chemicals are found in firefighting foams that had been used on neighbouring naval base HMAS Creswell and the Jervis Bay Range Facility for more than three decades since the 1970s.
Up to 1,000 people are eligible and the settlement relates to the community's ability to live on or conduct cultural activities on its land.
The community said its country and water had been poisoned and its culture seriously compromised.
In the Federal Court, Justice Michael Lee told Shine, the group's lawyers, he wanted to make sure it was clear to the community that the settlement does not relate to any potential health impacts which could be compensated through further legal action.
The $22 million sum includes at least $5 million in legal and administrative costs.
The terms of the settlement must now be approved by Justice Lee.
The matter is set to return to court on June 19 for approval after community members are consulted on the deal.
There will also be court supervised sessions with the community about how the settlement will be distributed.
Bittersweet outcome
Outside the court, Shine's joint head of class actions Craig Allsopp said the result was "bittersweet" for the community.
"While this is a victory for this First Nation's group, the Wreck Bay community has to grapple with the impacts of PFAS contamination for years to come," he said.
"Importantly they have lost their connection to the country by reason of the contamination and momentary compensation will never be adequate to repair that kind of loss."
Mr Allsop said the judge was at pains to make it clear personal injury claims were not cut off by this settlement "and that is something that Shine is actively looking at", he said.
"It has been good to get some compensation for essentially a land value claim, but I believe in the years ahead the real fight will be in relation to the personal injury claims."
The settlement was reached following days of mediation after the court had set a trial date of May 29 for the claim.
As the mediation continued, the Minister for Local Government and Territories, Kristy McBain, and several Labor politicians visited the community to talk about the $45 million promised in the budget to improve housing in the Wreck Bay village.
The Shine legal team described the announcement as a "curious twist of timing".
'Unprecedented outcome'
Mr Allsop said it was an "unprecedented outcome" and the first time there had been a successful claim by an Indigenous community in relation to PFAS contamination.
"It is groundbreaking, and I think will hopefully lead to more recognition of Indigenous issues in our court system," Mr Allsop said.
The $132.7 million multi-site settlement last week covered 30,000 claimants across Australia including sites at Wagga Wagga and Richmond in New South Wales, Wodonga in Victoria, Darwin in the Northern Territory, Townsville in Queensland, Edinburgh in South Australia, and Bullsbrook in Western Australia.
