The firm said it chose Wattle Brae Stud as the test case because it served as a typical example of a thoroughbred stud affected by the outbreak.

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Wattle Brae Stud claims Federal Government officials allowed the virus to escape the Eastern Creek quarantine station and contaminated other areas through careless hygiene standards. It claims it suffered losses of more than $3 million from the outbreak.

Attwood Marshall said the case will prove a significant test case and if successful, could result in more than 600 cases with compensation amounting to more than $60 million.