De Rose v South Australia - The first approved native title compensation determination

In October, the Federal Court handed down its judgment in De Rose v State of South Australia [2013] FCA 988, the first decision to order the payment of compensation for the extinguishment of native title rights and interests. Although the financial terms of the settlement were agreed by the parties in mediation, and were kept confidential by the Court, the decision is nonetheless significant in identifying a potential liability for both governments and third parties in compensating for extinguished native title.

Background: the Native Title Act and compensation for extinguishment

The Native Title Act 1993 (Cth) (NTA) creates a mechanism for compensating indigenous people for certain acts that have extinguished or impaired their native title rights and interests. This entitlement to compensation arises when the Commonwealth or State or Territory validates certain 'acts' that extinguish native title, described in the NTA as being past, intermediate period or future