The administrative blunder meant more than 140 Liberal candidates missed out on standing in the 2024 council elections, with eight councils left without a single Liberal candidate. Among those affected were John Moores and Paul Paynter, who were to run for Cessnock City Council. They became lead plaintiffs in a class action alleging breach of contract and negligence.
"What occurred in 2024 was painful. We lived and breathed for our communities, and our inability to run really hurt us and our supporters," Moores said. Paynter said he was "personally devastated" and that "democracy was affected".
The proposed settlement would see the party pay more than $1.75 million to about 50 candidates whom election analyst Ben Raue identified as likely to have won seats. In addition, the party will waive nomination fees for the 2028 election, provide $2250 in campaign funding per ward, and offer a "suitably worded apology". The total bill for the party is estimated at $2 million, excluding legal fees.
The NSW Liberals are already under financial pressure. Electoral Commission data shows the party raised $2.5 million in donations last financial year compared to Labor's $5.4 million, and only $56,979 this financial year to Labor's $170,000.
The nominations debacle also had internal consequences: state director Richard Shields was sacked, party president Don Harwin was forced out, and then federal opposition leader Peter Dutton instigated a federal takeover, appointing a three-person panel to reform the division. The affected councils included Northern Beaches, Lane Cove, Camden, Campbelltown, and regional areas such as Cessnock, Wollongong and the Blue Mountains.
Sydney lawyer George Newhouse, who brought the class action, said his clients were "hopeful that some closure is on the horizon" but noted that the settlement is subject to court approval. The NSW Liberal Party has been contacted for comment.