After almost two decades at the helm, Northern Australian Aboriginal Justice Agency (NAAJA) former chief executive Priscilla Atkins sued the organisation for wrongful dismissal in February 2023.
Ms Atkins made five claims of adverse actions against her, including the board acted without quorum to dismiss her, and an investigation by an external company into her conduct did not give her adequate right of reply.
She alleged she was dismissed after making a complaint to the board about the organisation's chief financial officer Madhur Evans, and her "performance and conduct".
However, NAAJA claimed that part of the reason Ms Atkins was dismissed was because its chairperson, Colleen Rosas, alleged that Ms Atkins' chief executive contract extension for $350,000 was forged using a digital signature.
On Thursday, Federal Court Justice Natalie Charlesworth ruled in favour of Ms Atkins on all five counts claiming NAAJA had contravened the Fair Work Act.
"The court is satisfied that each of the actions taken against Ms Atkins meets the description of adverse actions as defined in the Fair Work Act," the justice said.
One of the "curious features of the case" was the fact NAAJA only asked for a response from Ms Atkins to BDO Australia's external investigation after it had fired her, Justice Charlesworth said.
"Evidence does not support a conclusion that the few directors involved ... had a genuine desire to afford Ms Atkins procedural fairness."
At this stage the court made no ruling on damages with parties ordered to make further submissions by July 3.
A spokesperson for NAAJA has said the organisation is reviewing the decision and seeking further legal advice.
"NAAJA maintains a strong view that the board was justified in its decision to seek to terminate the employment of the former CEO and, as a result, we are surprised and disappointed by today's decision," said a spokesperson for the board.
The agency is the Territory's largest Aboriginal legal service, however following Ms Atkins' shock exit it has faced a string of difficulties.
In 2023 the Federal Court imposed an injunction on the board which prevented it recruiting or advertising for Ms Atkins' position.
Since she was dismissed in late 2022 the organisation has cycled through four senior executives, the latest being deputy chief executive Leeanne Caton who announced her resignation last week.
In late 2023 NAAJA suspended services in Alice Springs telling the court due to "severe staff shortages" it was unable to take on new criminal matters.
The move prompted outcry from federal senators and led to Indigenous Affairs Minister Linda Burney appointing an independent auditor through the National Indigenous Affairs Agency, which funds NAAJA.
Earlier in June during NT budget estimates it was also revealed the Northern Territory and federal governments were attempting to recoup up to $2.7 million in unspent funds.
NT Department of Attorney-General and Justice executive Gemma Lake said more than $210,000 had been spent to appoint an auditor to investigate NAAJA's recent financials.
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