A 1600-word Commonwealth statement of claim alleges that forever chemicals made by US chemical company 3M caused significant contamination of land and water that posed risks to human and animal health.
The recently lodged Federal Court statement of claim signals the start of the largest ever claim brought by the Commonwealth.
The government is seeking $2 billion in damages arising from the use of per- and polyfluoroalkyl substance (PFAS)-based products at 28 Defence bases across Australia and the areas surrounding them, such as the Williamtown Red Zone.
It alleges that by 1979 3M was aware that PFAS chemicals contained in aqueous film-forming foam (firefighting foam) widely used at Australian defence facilities were potentially toxic to animals and could migrate into drinking water.
This, the Commonwealth argues, amounted to "conscious, contumelious, contemptuous or outrageous disregard for the rights of the Commonwealth and the broader Australian public, including Defence personnel and those living in the areas surrounding the bases, who have been affected by the presence and continued migration of PFAS contamination".
It also alleges that 3M Australia continued to manufacture, market, distribute and sell aqueous film-forming foam for another 24 years, until at least 2003.
The federal government paid $86 million in 2020 to settle a class action with members of the local community who had experienced losses in the value of their properties due to contamination.
Many in the surrounding area continue to be treated for illnesses that have been linked to the chemicals.
Assistant Minister for Defence Peter Khalil said in May that the government was seeking to recover significant past and future expenses incurred by investigating and managing contamination resulting from the historical storage and use of PFAS products.
"I have visited communities right across Australia that have been affected by PFAS contamination, and they need action. That's why the Commonwealth commenced this legal action today," he said.
"These court proceedings are about recovering the significant costs Defence has and will continue to incur while investigating and managing the Defence estate and supporting Australians affected by PFAS.
"Defence has spent over $1.3 billion on its PFAS response, and continues to work closely with state and local authorities to support local communities near bases affected by PFAS, and that work will continue."
A Senate inquiry in November 2018 recommended legal action against 3M and said any settlement should be used to fund remediation of contaminated sites.
In its submission to the inquiry, 3M said it had been an industry leader assisting PFAS regulation and was an expert at removing the chemicals.
The case is listed for a case management hearing on October 16.
3M, which is defending the litigation, is due to file its defence by December 11.
