Disputes & forensic accounting
Quantifying stolen wages for Indigenous Queenslanders
KordaMentha was engaged to quantify unpaid wages held in trust by the Queensland Government for Aboriginal and Torres Strait Islander workers between 1939 and 1972. Our analysis supported a $190 million class action settlement - the largest of its kind outside native title.
Between 1939 and 1972, the Queensland Government controlled the employment and financial affairs of Aboriginal and Torres Strait Islander peoples under legislation that allowed it to act as trustee of their wages.
The State was responsible for ensuring fair employment conditions, proper banking of wages, access to savings, and full payment upon exemption from the Act.
The Stolen Wages Class Action alleged that the State failed in its fiduciary duties by withholding wages and mismanaging trust funds. The claim, led by Mr Hans Pearson and others, sought compensation for unpaid wages, lost interest, and unauthorised deductions.
KordaMentha was appointed as independent expert by BE Law to quantify the financial loss suffered by up to 10,000 affected individuals. Our work played a critical role in shaping the legal strategy and supporting a landmark settlement.
How we helped
KordaMentha’s role was to assess the quantum of unpaid wages and related losses across a large and historically complex dataset. We reviewed extensive archival financial records and identified systemic deficiencies in the State’s trust management processes.
Our analysis informed the legal team’s formulation of loss categories and underpinned negotiations with the State. We prepared expert reports for both mediation and trial, addressing key areas of loss including unauthorised withdrawals, unconstitutional deductions, lost interest, and compensation for forced labour.
Given the limitations of historical data, we developed a methodology to extrapolate losses from a representative sample to the broader claimant group.
- Reviewed and analysed historical financial records
- Identified systemic trust management failures
- Quantified unauthorised deductions and lost interest
- Developed extrapolation model for group-wide loss
- Prepared expert reports for mediation and trial
- Informed legal strategy and supported negotiations
Outcomes acheived
- Landmark settlement reached: $190 million agreement secured before trial
- Largest non–native title payout: Most significant Indigenous settlement outside native title
- Expert evidence accepted: Reports supported both mediation and trial preparation
- Loss model scaled to group: Sample-based methodology applied to 10,000 claimants
- Legal strategy strengthened: Quantification enabled clear heads of loss
- Historical accountability advanced: Case contributed to broader recognition of past injustices
