Violent battles over rights to land, food and water sources characterised race relations in the nineteenth century. Throughout this conflict Indigenous children were kidnapped and exploited for their labour. Indigenous children were still being `run down' by Europeans in the northern areas of Australia in the early twentieth century."
That quote from a report called 'Bringing them home' by the Human Rights and Equal Opportunity Commission. An excellent resource with a comprehensive treatment of the stolen generations.
What a cruel policy it was. Many religious organisations where involved too of course and I am sure that some well meaning souls even thought they were doing the right thing.
I have just looked up my legal dictionary and I believe the case you are speaking of is Cubillo vs Commonwealth. I will read about it - not sure how the Aboriginal People could lose that one.
Let's face it though the Australian situation wasn't particularly unique. Last year I studied African American literature and was so moved and shocked, particularly by the work of Toni Morrison. Reading her work was such an education. Very sad indeed and all of that went on for hundreds of years.