Territory Families has been criticised by a Coroner for removing a disabled child from his Katherine family just months before he died.
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Handing down his findings today, Judge Greg Cavanagh said the government's first responsibility was to provide support for the families of disabled children.
Judge Cavanagh said if proper procedures were followed the "child would not have been separated from those he loved and who loved him in the last four months of his life".
The court today issued its findings into an October inquest into the death of Lebron Douglas Martin.
Lebron was aged four years old when he died in Katherine Hospital on December 13, 2017.
The young boy suffered from a rare congenital condition called Niemen Pick Type C.
NPC is a progressive and fatal genetic disorder. It is characterised by the inability of the body to transport cholesterol and other fatty substances inside cells. The fatty substances accumulate in tissues including the brain, spleen and liver and cause damage.
The same condition afflicted his sibling who had earlier died at four months old.
His condition worsened as he grew older, his spleen was removed and in his last months he was unable to eat properly.
"He died because of the progression of the genetic disorder. His death was not unexpected," Judge Cavanagh said.
"It would not ordinarily have been a death reportable to the Coroner. However, it became reportable because four months and 15 days prior to his death the Department of Territory Families removed him from his family's care."
The inquest had been told by authorities Lebron's case was complex and multifaceted and was not a typical child protection case.
"Lebron's case involved a child suffering from chronic and terminal illness and parents unable to meet his complex medical needs which resulted in risks over and above those associated with his underlying condition," the inquest was told.
Judge Cavanagh said removing any child with disabilities from family because of complex medical needs arising from those disabilities "is prima facie inappropriate".
His parents told the inquest: "We very much wanted Lebron to stay in our care and we worried that Lebron may pass away in someone else's care."
Territory Families told the inquest "there was no other option but to take Lebron into care because there were no services in Katherine that could adequately support the family".
Judge Cavanagh said: "It was incumbent upon the Department of Territory Families to support the family so they could cope with the challenges that came with multiple medical providers and the difficulties in feeding him.
"However, it is clear that the Department did not understand that to be its role. When it was indicated by the Office of Disability that they could not fund or provide sufficient support, the Department of Territory Families considered the only option to be the removal of Lebron from his family.
"In my view they were not justified in so doing. The Department should have ensured that there was continuing support for the family after the success of that support in 2016. If there were further concerns about the feeding and medical care, that should have been properly investigated and appropriate support put in place."
Judge Cavanagh recommended in future Territory Families ensure that staff have the training and resources to appropriately support children with disabilities and their families.
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