NT government faces Federal Court challenge over prison compensation caps

The North Australian Aboriginal Justice Agency (NAAJA) has launched a legal challenge against the Northern Territory government, contesting laws that limit compensation payouts for unlawful actions within prisons. The case, filed in the Federal Court, represents a significant test of the NT government's ability to cap payments for offenses such as illegal strip searches, assaults, and wrongful imprisonment.

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The NT government passed new legislation basically to say, if we break the law, if we assault young people, if we unlawfully detain young people or prisoners, we don't have to pay the same level of damages that anybody else pays.

These laws were enacted in 2021, following a substantial settlement with former youth detainees who alleged assault, abuse, and false imprisonment. Prior to the legislative changes, courts determined compensation amounts, which were uncapped. NAAJA contends that the new legislation allows the government to pay victims only a fraction of what they could have previously received.

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If an ordinary citizen unlawfully assaulted another person and there was a civil lawsuit about that, it wouldn't be unusual for somebody to have to pay $50,000, $60,000, $100,000. What the government has done is said the most we have to pay is $5,000 or $6,000 for each incident and a maximum cap of $18,000.

NAAJA chief executive Ben Grimes stated that the laws permit the government to pay less for breaking the law than an ordinary citizen would. He highlighted that while an individual might pay $50,000 to $100,000 in damages for assault, the government's cap is set at $5,000 to $6,000 per incident, with a maximum of $18,000. Grimes described these laws as not passing "the pub test."

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The laws as they stand don't pass the pub test.

Under the current legislation, damages are capped at approximately $3,000 for unlawful assaults by prison guards, $6,250 for unlawful battery and strip searches, and about $312 daily for wrongful imprisonment after 60 days. Barrister Geoffrey Watson SC has labeled the laws as "draconian" and discriminatory, suggesting they are designed to protect the government and diminish citizens' rights, particularly impacting First Nations people who form the majority of the NT's prison population. Watson believes a successful challenge by NAAJA would be a major blow to the NT government.

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I've never seen anything even vaguely like laws as severe as these laws in terms ... of protecting the government, and also removing rights of citizens.