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Judge slams law firm over delayed $120m payout to sacked Qantas staff

Judge slams law firm over delayed $120m payout to sacked Qantas staff
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Judge criticises Maurice Blackburn Lawyers over delayed $120m compensation for sacked Qantas workers Wed 29 Jul 2026 at 12:58pm , updatedWed 29 Jul 2026 at 1:29pm In short: A Federal Court judge has delivered a sharp rebuke to Maurice Blackburn Lawyers for delaying compensation to sacked Qantas workers. The class action law firm has been handling a $120 million payout that Qantas agreed to pay its illegally sacked workers in 2024, following a four-year federal court battle between the...

Judge criticises Maurice Blackburn Lawyers over delayed $120m compensation for sacked Qantas workers Wed 29 Jul 2026 at 12:58pm , updatedWed 29 Jul 2026 at 1:29pm In short: A Federal Court judge has delivered a sharp rebuke to Maurice Blackburn Lawyers for delaying compensation to sacked Qantas workers. The class action law firm has been handling a $120 million payout that Qantas agreed to pay its illegally sacked workers in 2024, following a four-year federal court battle between the airline and the Transport Workers Union. The judge says the firm will have to wear the consequences of breaching his court orders. A Federal Court judge has delivered a sharp rebuke to a class action law firm for delaying compensation to sacked Qantas workers, saying he has "no confidence" in the process and the firm would have to wear the consequences of breaching his court orders. Maurice Blackburn Lawyers has been handling a $120 million payout that Qantas agreed to pay its illegally sacked workers in 2024, following a four-year Federal Court battle between the airline and the Transport Workers Union. Workers were also expecting a share of $40 million, part of a penalty the court imposed on Qantas. But the Federal Court heard Maurice Blackburn Lawyers only raised the alarm eight days ago that it needed more time to work out the complex payments. Justice Michael Lee slapped down the law firm for coming to him at "a minute to midnight," and refused to deal with the request before the July 31 deadline, saying he was not given enough time to consider it properly. It means 1,820 Qantas workers who the court found were illegally sacked in 2020 during the COVID-19 pandemic will have to wait longer to receive their compensation. Law firm requests time extension In its application for an extension of time, the law firm said it was struggling with the number of claimants, getting accurate medical reports and working with tax issues and Services Australia. Maurice Blackburn Lawyers was meant to provide a schedule of payments made in the $120 million payout to the court by Friday, so the rest of the money could be apportioned to workers. Justice Lee told the court Maurice Blackburn Lawyers must have known much earlier that it was going to miss his court-ordered deadline. "I confess to being disturbed that almost six years after the outsourcing decision, the court is now being asked … to abandon a timetable which it had every reason to believe was realistic when it was fixed only seven months ago," he said. He also reprimanded the firm's lawyers for writing to him personally asking for more time, instead of initially filing an application to have the matter dealt with in open court. "Applications affecting the rights and expectations of more than 1,800 people ought to be brought openly," he said. "Court orders are not like the traffic lights in Palermo. "They are not there merely to be observed when it is thought convenient to do so." Barrister for Maurice Blackburn Lawyers, Adam Hochroth SC, told the court he wanted the matter dealt with on Wednesday, because his client's deadline was just two days away. But Justice Lee said he would deal with the matter next week instead. "Yes and you'll be in breach of [the deadline], and we'll see what consequences flow from that," he replied. Qantas has been contacted for comment. A spokesperson for Maurice Blackburn Lawyers said they would not comment on Wednesday's proceedings, but provided the ABC with a statement which said the law firm was experienced in class actions. "The work is detailed and complex and requires the Administrator to engage on an individual basis with all claimants," the statement said. "We anticipate that claimants will be advised of the estimated amount they will be eligible to receive shortly." Workers not yet able to 'move on' Outside court, sacked worker Don Dixon said he wanted the case to be over, so he could "get his life back". "A lot of people have financial situations that are terrible,"he said. "They really need that compensation for their health and to move on financially and pay the bills they haven't been able to pay." Transport Workers Union national secretary Michael Kaine said Maurice Blackburn Lawyers won the case for workers, but "now it needs to step up to deliver the compensation these workers deserve into their pockets". Justice Lee said the court was holding over $35 million that "should be in the hands of workers" and that it could not be distributed until the initial $120 million payout was finalised. "Payment has become dependent upon a delayed administration outside the court's direct supervision, and which, on the present material, I have no confidence I know will be completed." He said he would deal with the matter on August 6, when he had more time to consider it properly.
Qantas (ORG) Maurice Blackburn (PERSON) Federal Court (ORG) Maurice Blackburn Lawyers (PERSON) the Transport Workers Union (ORG) the Federal Court (ORG) Michael Lee (PERSON) Services Australia (ORG) Lee (PERSON) Palermo (LOCATION)
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