NSW Supreme Court Dismisses $1.5 Billion MDBA Class Action

The New South Wales Supreme Court dismissed a class action lawsuit brought by approximately 28,000 irrigators from southern New South Wales and northern Victoria against the Murray-Darling Basin Authority (MDBA). The plaintiffs, led by Doyle's Farm Produce Pty Ltd, sought between $750 million and $1.5 billion in damages, alleging the agency mismanaged river operations between 2017 and 2019. Specifically, they claimed that over-bank flooding at the Barmah Choke and water transfers from the Yarrawonga Weir resulted in the loss of 140 gigalitres of water, leading to lower allocations and lost profits.

Justice Tim Faulkner ruled that the MDBA has a legal obligation to act in the public interest and balance water sharing between states rather than prioritizing private irrigators. He determined that imposing a duty of care to avoid pure economic loss would distort the agency's statutory mandate and create conflicting liabilities. The court found no breach of duty regarding the MDBA's operating plans or climate outlooks, and ordered the plaintiffs to pay the agency's legal costs.

Despite the ruling, representatives for the irrigators highlighted a trial admission that over-bank transfers waste between 36 percent and 41 percent of water volume. Sophie Baldwin, Chief Executive of the Southern Riverina Irrigators, described the judgment as disappointing, while Member of Parliament Helen Dalton called for legislative changes to ensure legal accountability for the agency. The Southern Riverina Irrigators indicated they are considering an appeal.