Compensation for Detriment caused by Defective Administration (CDDA) Scheme

Monday, April 29, 2019

The matter of compensation was raised at a recent Department of Agriculture Cargo Consultative Committee (DCCC) meeting resulting in the supply of a link to the Department of Finance's website referring to the Compensation for Detriment caused by Defective Administration (CDDA) Scheme – refer HERE.
 
A link is also provided to the Commonwealth Ombudsman factsheet on the CDDA Scheme – refer HERE.

The following is a brief commentary from Russell Wiese, Principal Hunt & Hunt Lawyers
 
"The Compensation for Detriment caused by Defective Administration (CDDA) scheme applies to scenarios where a Government department has acted unreasonably and caused you loss.  Examples include providing incorrect advice or unreasonably not following a set procedure.  It is a scheme that can be considered where there is no other legal avenue for compensation available.  For example, it would not apply where you could sue the Government department in negligence.
 
The payment of claims is completely discretionary.  The chances of compensation are increased where you can provide specific details about the defective administration, including why it is defective and not the intended outcome of Government policy.  For instances, it will not be enough to demonstrate that loss was caused by the Government taking action in response to the threat of the stink bug.  It would be necessary to show that the response was defective in a specific way that resulted in a quantifiable loss.  The chances of compensation are likely to be increased where you are affected in a unique or unexpected way.
 
Our recommendation is to keep good records of all communications with the Government departments, costs incurred in relation to the issue and steps taken to try resolve the matter."

 

Should FTA members require professional support in making a claim againt any government department, we recommend contact with Russell on 03 8602 9231
or appropriate management of the process.

 
Andrew Crawford – FTA / APSA