Residents of the Rivervue Retirement Village in Avondale Heights have initiated a class action lawsuit against Melbourne Water. The lawsuit, filed in the Supreme Court, alleges negligence following the Maribyrnong River's overflow in October 2022, which inundated 45 villas and displaced dozens of residents.
Background to the Flooding
Heavy rainfall in October 2022 caused the Maribyrnong River to reach levels not observed in nearly 50 years. The class action asserts that Melbourne Water's flood modelling and development approvals were inadequate, contributing to the flooding.
Official Inquiries and Findings
An investigation by Victorian Ombudsman Marlo Baragwanath, released in November, concluded that the retirement village should not have been constructed in its existing form. The report attributed the 2022 flooding at Rivervue to poor Melbourne Water modelling from the early 2000s and errors in the building plans.
A parliamentary inquiry also previously acknowledged "mistakes were clearly made" in the flood modelling and noted the reliance on ineffective mitigation efforts. The ombudsman's report, "When the Water Rises," stated that Melbourne Water's "rushed and flawed flood modelling" during early site development under-predicted flooding, resulting in homes being built too low, with some even lower due to approved building plan errors.
Further, the ombudsman highlighted that the state's decision in 2016 to remove Rivervue from significant flood planning controls contributed to a false sense of security.
Compensation Sought
Lead plaintiff Stan Korkliniewski and other residents are pursuing Melbourne Water for losses and damages. The writ alleges a significant decrease in the market value of leases within the retirement village post-flood. Residents are seeking compensation for:
- Property repair and replacement costs
- Temporary accommodation expenses
- Increased insurance premiums and village levies
- Loss of leasehold value
- Distress
Mayweathers law firm partner Steve Vrtkovsi, representing the claimants, indicated that individual losses are substantial.
Government and Authority Responses
Last year, the state government rejected a parliamentary inquiry's recommendation to fund the retrofitting or raising of flood-prone homes, citing high costs. The ombudsman has since recommended that the government compensate Rivervue residents who sell their leases at a loss; the government has not yet formally responded to this recommendation.
Melbourne Water's acting managing director, Fiona Schutt, expressed sympathy for those affected by the 2022 Maribyrnong flood. Schutt stated that Melbourne Water is addressing the ombudsman's recommendations with state and local governments and is engaging with Rivervue residents as part of a catchment flood mitigation study. She added that commenting further on the ongoing case would be inappropriate.
Melbourne Water has since updated its flood modelling and maps, which now classify Rivervue as flood-prone. LLS Australia Funding Pty Ltd is providing financial support for the class action.