Thursday 19 September 2019

At last, a class action to be mounted against Morrison Government's error-prone 'robodebt'


If any of the following applies to you and you are considering joining this class action challenge on behalf of Centrelink clients who were served with a debt notice, the following are first contact details for the law firm which may act for you if you are eligible:

Gordon Legal

Ph: 1300 55 50 16

Informaton at https://gordonlegal.com.au/robodebt-class-action/ Online contact form at https://gordonlegal.com.au/contact

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The Guardian, 17 September 2019:

Gordon Legal has put out its official statement on the class action: 

"The law firm will challenge, on behalf of affected persons, the government’s use of a flawed calculation system by Centrelink to unlawfully take back tens of millions of dollars from many thousands of Centrelink recipients, including pensioners. 

The money for pensioners, carers, widows, students, farmers and unemployed people was taken from them due to a one-size-fits-all online compliance system. 

The robodebt scheme has been in place since mid-2016, its legality was first raised with us by the new shadow minister for government services, Bill Shorten. 

The basis for the challenge is that that the federal government financially benefited when it wrongfully took and banked money that legitimately belonged to recipients. 

Gordon Legal Senior Partner Peter Gordon says ‘investigations reveal between two to three hundred million dollars have been wrongly taken from people, and making it even worse was many were hit with penalties of 10% on those amounts.’ 

‘These people are the least able groups to afford the heavy-handed actions which are based on a system that used ATO averages that didn’t take into account individual circumstances.’ 

‘The unfair and incorrect assumptions had a devastating financial impact on people’s lives. The emotional distress for people who have done nothing wrong has been high.’ 

‘The robodebt system put debt collectors onto innocent people to chase unlawful debts.’ 

‘They have been unfairly financially disadvantaged and must be repaid with interest, penalties dropped and damages paid.’ 

‘The amounts owed will vary from case to case but the average repayments could be a few thousand dollars which is vital from a financial and wellbeing perspective for these people who are least able to afford it.’

Peter Gordon says ‘The people in this class action were not gaming the system. They had honest claims to payments and allowances that Robodebt wrongly assessed, penalised and pursued with harsh consequences.’ 

‘If you have been unfairly affected by Robodebt, you should register your details on the Gordon Legal website and we will be in touch.’ 

Gordon Legal considers a class action is likely to be the best way to deliver redress for people unfairly impacted by Robodebt." [my yellow highlighting]

Peter Gordon: 

"The class action element of the claim is reasonably straightforward. What is innovative about this is to bring a claim against the government for damages for unjust enrichment that will require the high court to recognise legal principles, which I hardly recognised in other common law countries, particularly the United Kingdom. It may break new ground. We think there … is a strong legal basis for it. 

In order for a class action to proceed, either in a state court or the federal jurisdiction, you need to demonstrate that there appear to be several more people who have claims with similar or the same common issues in the fact of law, and there are clearly a large number of people who have similar issues of fact and of law. 

So the question of its status as a class action is not particularly controversial. Under class-action law, not every case needs to be exactly the same. They only have to be roughly similar. Not every case needs to be bound to succeed. You simply need to demonstrate that there are cases that have similar issues that the court can resolve for the benefit of everybody. 

Everyone who believes they are aggrieved is entitled to bring their own actions, whether they are in the ART or as appropriately advised. We are working with the legal aid agencies, but it doesn’t take, I think, a lot of consideration of what has happened to understand that if a template approach has been applied across 800,000 people, and there are admittedly, on the part of the government, 150,000 errors that have been made, that’s a very large number of mistakes which have been made. If they’ve been made, there is a limit to the ability of any court system and indeed bureaucracy to take them off one by one. 

We think it’s appropriate that if there are common issues that have been got wrong by the Commonwealth, that they be addressed in a way that gives everyone release, not just those who are able to access lawyers and legal aid or have the wherewithal all the records to be able to do it themselves."

Bill Shorten: 

" Let’s be clear, we’ve asked the government to fix this, but they’ve got it wrong. If the government through parliament won’t fix the problem, I think giving justice to victims through class action is a legitimate political approach to take. 

Question: Should the program then in your view be suspended while this class action is even being looked at? 

That would be smart for them to suspend it. The question you have to ask is why is the government looking at a blanket scheme looking at annual wages data against people getting fortnightly payments? 

They are hoping they can shake down people into paying up. This is a government building their government position based on this faulty, immoral and quite possibly illegal scheme, but they should suspend it and rule out extending it to anyone else, and in fact they should revisit their own files and perhaps sit down and work out why this is wrong and stop it. 

The government keeps reaching for blaming Labor pre-2013. Robodebt, this online compliance system, was introduced by the current government. 

The current government announced compliance campaigns in 2015, 2016, and they started introducing robodebt, their use of an algorithm to data match. 

It was born under this government and the pathology of robodebt is sick, it has caused countless harm. I give a shoutout to the media, you’ve all covered the problems of robodebt, but at what point in Australia do you say once you’ve seen individual case after individual case it is called a pattern, and the pattern shows robodebt is immoral itself. 

What we and Gordon Legal is going to do is testing the legal foundations of robodebt, because my own research in the last couple of months has led me to believe it is almost certainly illegal and I just have to do research through the stories you’ve covered to say there is a sickness at the heart of robodebt which needs to be cured."


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