Thousands of Victorian businesses who are continuing to suffer the financial impact of COVID-19 lockdowns are one step closer to having their class action case against the state heard.
The State of Victoria on Friday lost an attempt to delay the case, which has been brought by lead plaintiff 5 Boroughs NY Pty Ltd on behalf of a group of businesses over economic loss resulting from the 2020 lockdown.
The businesses are seeking damages from the State of Victoria saying it breached its duty to take reasonable care in implementing infection prevention procedures at quarantine hotels, resulting in the spread of COVID-19 into the population and a 112-day lockdown.
The government attempted to stay the proceedings pending a resolution to separate criminal proceedings brought by WorkSafe against the Department of Health over its hotel quarantine program.
However, the Supreme Court Justice John Dixon rejected this and asked the parties to discuss pre-trial dates to help the case to progress.
He found delaying the case any further could cause more harm to businesses who were already suffering financially, as many of the businesses continue to face hardship from the 2020 lockdown.
"This includes members that have to pay back rent which was subject to a moratorium during that lockdown, putting them under financial strain, some have been placed in administration or liquidation, and some are at risk of having their business deregistered as a result of losses incurred during the lockdown," he wrote in written reasons on Friday.
"Therefore, while any delay in relief is an injustice, the harm is particularly acute in this case."
The matter will return to court at a later date.
