Legal action against Santos could topple a major environmental law group. 

The Environmental Defenders Office (EDO) faces potential insolvency following an $8.6 million loss for the past financial year. 

The financial strain stems from a $9 million legal costs order paid to fossil fuel company Santos after the EDO lost a case representing Tiwi Islands’ traditional owners opposing a gas pipeline project.

The Federal Court ruled against the EDO after it found the organisation had improperly coached a witness, a finding the EDO did not appeal but acknowledged, stating it “treated the court’s findings with the utmost seriousness”. 

The case, centred on cultural and environmental concerns regarding Santos’s Barossa Gas Export Pipeline, was dismissed, with the court criticising the integrity of the evidence presented.

Santos claimed the EDO’s conduct warranted full liability for legal costs, a position upheld by the judge.
Santos has denied accusations of running a strategic litigation against public participation (SLAPP) suit, designed to ward off future litigation.

Despite financial uncertainty, the EDO says it remains operational. 

CEO David Morris confirmed the debt was managed through reserves, insurance, and a $6.5 million interest-free loan, with repayments planned over several years. 

“We will continue to support the community for as long as people need us,” Morris stated.

However, legal experts warn the ruling may deter lawyers from pursuing public interest environmental cases. 

The EDO’s financial report has been submitted to the Australian Charities and Not-for-Profits Commission, with its future hinging on continued financial support.

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