Aurora Community Care has been accused of failing to comply with its obligations after a 38-year-old man left his Queensland residence in March 2023 without the knowledge of two on-site care workers.
The man was then fatally hit by a car.
One worker had fallen asleep at the time and the other heard the back door open but did not investigate, according to court documents filed by NDIS Quality and Safeguards commissioner Tracy Mackey.
The man had been diagnosed with an intellectual disability and various other medical conditions, and required round-the-clock supervision by two support workers.
Aurora knew the man would try to leave the premises and that there were no locks on his doors preventing him from doing so, court documents said.
As well as this, the company allegedly restricted the man's access to Pepsi and TV without the proper approvals, knowing it would increase the likelihood he would engage in harmful behaviours.
Aurora stopped trading and entered liquidation in February, two months after the Federal Court lawsuit was launched.
In a judgment published on Wednesday, Justice Wendy Abraham noted the company's decision to close its doors seemingly came because it had been sued.
The judge gave permission for the commissioner to continue the lawsuit despite Aurora being defunct, noting the case would send a message to others.
"I agree with the commissioner's submission that these proceedings will promote the public interest in compliance with the NDIS Act, as well as the protection of people with disability receiving supports by other registered NDIS providers," she wrote.
The seriousness of the allegations weighed heavily in favour of permission being granted for the case to continue, Justice Abraham said.
The commissioner has made an undertaking not to enforce any penalties or costs orders stemming from the case without the court's approval.
At the time the lawsuit was launched, Ms Mackey said it was as a tragic case and that legal action would send a "very strong message" to all providers and support workers.
"The commission expects every support worker and provider in the NDIS to act at all times with integrity, honesty and transparency, and deliver safe and quality services to participants," she said.
"If they fail to do so the commission will act."
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