Gazette bushfire victims are likely to be $250,000 out of pocket after a Supreme Court judge dismissed their class action claim as "fanciful".
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The Gazette bushfire on St Patrick’s Day last year was caused by a eucalypt tree falling on to a powerline that ran through a blue gum plantation, causing the ignition of nearby vegetation.
The cause of the fire was admitted by Powercor.
Justice John Dixon handed down a finding on Wednesday.
”The proposition that Powercor created, or aggravated, the risk of bushfire on St Patrick’s Day in the pleaded circumstances - that is, by failing to clear healthy blue gums in a plantation - is fanciful," he found.
"The claim in nuisance that is articulated by (plaintiff) Block is not coherent with the responsibilities and obligations created by the statutory scheme.
"The proceeding will be summarily dismissed," he found.
Maddens Lawyers, of Warrnambool, and Tim Tobin, QC, ran the class action and will not be paid for their professional services.
The issue of Powercor's costs have been adjourned until a further hearing on February 15.
It is expected that those costs will have to be paid by the Gazette class action lead plaintiffs Nicholas and Georgina Block.
Industry sources expect the costs to be about $250,000.
Mr Block on Thursday declined to comment when contacted by The Standard.
Maddens Lawyers principal Brendan Pendergast said the Supreme Court of Victoria on Wednesday ruled that Powercor has no case to answer in relation to the Gazette fire as pleaded.
Mr Pendergast was asked about the fundamental issues with the case and about Powercor's costs.
"Of course, some cases are difficult and some are easy," he said.
"We don't confine our efforts to easy cases. There is no order for costs. The costs issue is reserved."
Mr Pendergast said Maddens would soon convene a meeting of property owners affected by the Gazette fire to discuss the ruling.
"And consider any possible options for recovery of compensation for these fire victims. That has been and continues to be Maddens Lawyers' focus," he said.
Mr Pendergast added that the court on Wednesday also heard submissions and provided directions to the parties in respect of the Garvoc class action, which involves about 40 people, and the Terang class action, involving more than 180 people, relating to a forthcoming court ordered mediation of each matter.
"We believe these cases disclose very strong causes of action against Powercor," he said.
"If they are not resolved at mediation they are both fixed for trial in October of this year.
"Presently we are well underway with the important task of identifying and quantifying each fire victim's total compensable fire related losses.”
