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A multi-million-dollar negligence claim over a 2018 double drowning at the public lagoon at Airlie Beach in the Whitsundays has been settled out of court.

Jie Tan, whose husband Yuanwei Zhang and five-year-old son, Chenxi, died at the lagoon, had been seeking $4.5 million (21 million yuan) in damages in an action in the Queensland Supreme Court against Whitsunday Regional Council (WRC) and its lifeguarding contractor, Ellmill Enterprises.

The claim as lodged had claimed there was negligence on the part of the Council Ellmill Enterprises.

However, the claim has now been settled with no details of the settlement released.

The parties had previously failed to reach agreement about the circumstances of the tragedy.

Documents lodged in the Supreme Court by Tan's lawyers point to a possible cause for the double tragedy, advising "Mr Zhang may have suffered a medical episode which caused him to no longer be able to remain above the water."

The documents countered claims from both Council and Ellmill's lawyers about Zhang's competency and care for his young son.

The pair slipped under the surface of the water, and it took six minutes for someone to notice the father's body at the bottom of the lagoon.

It was a further seven minutes before the young boy's body was pulled to the surface.

Mediation late last year failed to reach a resolution, but lawyers for Tan have confirmed the matter has been resolved by settlement.

Concerns around audits and facilities
Documents lodged prior to the settlement show a number of local governments that operate lagoon facilities were contacted by Tan's lawyers.

Among them was the Brisbane City Council, which was asked about plans and engineering for its public swimming facility at Southbank, as well as queries about depth signage, and floating barriers.

Those final two issues were flagged as potential areas for improvement at the Airlie Beach lagoon in a consultant's report to the Whitsunday Regional Council.

The documents also alleged that the Whitsunday Regional Council failed to carry out regular risk assessments for the lagoon with a suggestion that regular audits had not been undertaken done on an annual basis since the facility opened in 2001.

Lifeguards were stationed on a bridge across the lagoon at the time the pair drowned, but questions were asked about whether their conduct and patrols were adequate.

Lawyers for Ellmill Entreprises said the bridge was the only elevated position and the guards were facing opposite directions and regularly scanning.

A lifeguard tower was installed at the lagoon in 2019 - after the drownings.

The documents said one of the lifeguards approached 5-year-old Chenxi before he drowned and was satisfied that he was being properly supervised and that lifeguards observed that Zhang was smiling and seemed a competent swimmer.

Criminal case still pending
Separate legal action brought by Workplace Health and Safety/WorkSafe Queensland has been heard in Proserpine.

It's alleged the Whitsunday Regional Council failed to ensure the health and safety of persons was not put at risk from its operations of the lagoon and that its failure exposed persons to a risk of death or serious injury.

Two charges of failing to comply with its primary duty of care under the Work Health and Safety Act.

Lawyers for the council asked for those charges to be struck out, arguing the council had been charged under the wrong legislation.

A decision on that application has been reserved.

Images: Airlie Beach Lagoon from the air (top, credit: Whitsunday Regional Council) and Yuanwei Zhang, Jie Ta and their son Chenxi before the 2018 tragedy (below, supplied).

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