In April this year we were successful in recovering compensation of close to $3,000,000.00 for one of our clients who suffered injuries in a motor vehicle accident that occurred during a break from work.
In March 2003 our client was struck by a motor vehicle resulting in him suffering paraplegia.
Because the accident happened during a work break he had an entitlement to claim workers compensation in addition to having a claim against the driver of the car that hit him pursuant to the Motor Accident Compensation Act.
Whilst he was waiting for us to settle his damages claim against the Motor Accident Act insurer, our client had the benefit of substantial payments of compensation from his employer’s workers compensation insurer.
The law provides that the workers compensation insurer is entitled to have benefits refunded where an injured worker brings proceedings against a motor accident insurer and recovers a lump sum amount of compensation. This is logical as it prevents an injured person from recovering compensation twice.
In this case, our client’s settlement of the motor accident claim had to be compromised to take account of the likelihood that the Court would find that he was guilty of contributory negligence. We advised our client that there was a reasonable likelihood that the Court would find that he was partially responsible for the accident and that the Court would have reduced his damages by the percentage to which the Court would find him to be responsible.
The workers compensation insurer wanted all its money back. That amount was over $600,000.00. We are arguing that they should not get all of it back because our client had his damages reduced on account of contributory negligence and his payback should be reduced by the same percentage. This issue has not been decided by the Courts before and is therefore a new legal point. It is a very important point for the workers of New South Wales and one that we told our client he should contest.
As a result the matter is now to go for hearing before the Court to decide whether or not he has to pay back all of the workers compensation. If we can win for our client it will save him hundreds of thousands of dollars.
In our more than 30 years of experience in fighting insurance companies, one thing is clear. If you do not push the issue and seek to break new ground, your clients will be disadvantaged. Any change in the law could benefit not only one client but all clients and indeed all workers who have the misfortune to be involved in accidents and be entitled to compensation.
At Beilby Poulden Costello we consider it important to be at the forefront of new developments and are prepared to challenge and fight when our clients’ interests are threatened.
By Courtenay Poulden
Publish Date: October 16, 2007