A SETTLEMENT has been reached in a class action against electricity distributor Powercor over a Black Saturday bushfire that destroyed land and property in Victoria's southwest at Pomborneit.
The parties reached the settlement on the eve of a judgment being handed down in the Victorian Supreme Court on Wednesday, following a four-week trial before Justice Jack Forrest.
The settlement is estimated to be worth $10 million.
Under the settlement, Powercor will pay victims 100 per cent of the losses they incurred as a result of the bushfire on February 7, 2009.
They will be reimbursed the full value of the property damaged, based on what it was worth on the day the fire hit.
Powercor will maintain its denial of legal liability for the blaze.
The settlement is subject to approval by Justice David Beach on January 31 next year.
Brendan Pendergast, commercial litigation principal at Maddens Lawyers, described the settlement as a huge win, reflecting the inadequate maintenance of Powercor's powerlines.
"Although Powercor maintains denial of legal liability for the blaze, it is difficult not to conclude that the settlement reflects a concern by the power provider that the court would have found that the fire began when sparks from clashing Powercor-owned lines ignited dry grass," he said.
About 30 residents had joined the class action led by landowner Terry Place and more may join now that the settlement has been reached.
Comment is being sought from Powercor.
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