Court Finds Victorian State Government Short-changed Injured Victorians Millions

Hundreds, possibly thousands of injured people in Victoria have been short-changed on their injury compensation claims due to a dodgy interpretation of the law by State Government insurers.

The Supreme Court has today decided that the Government, under its WorkCover and Transport Accident Commission banners, has used an incorrect method to judge lump sum payments to injured people.

"The Victorian Government must pay up so that injured people who've been short-changed for almost 10 years can now receive what they were always rightfully entitled to under the law," Belbridge Hague partner Peter Simpson said.

"Assessment methods which are applied in both NSW and Victoria are harsh enough without a Government applying their own draconian interpretation, which the court has today decided was wrong." Mr Simpson said.

The method used by WorkCover and the TAC in assessing injury claims involves applying an 'impairment score' to the injured person using mandated American Guides. When the Guides were introduced the TAC put great effort into peddling to medical assessors the least favourable (and cheapest!) interpretation for claimants.

The court today ruled that the score applied in the case of Paul Taylor, an injured transport worker from North Eastern Victoria who underwent a spinal fusion, should have been 26% rather than the 16% he was given at the time of his assessment. This incorrect assessment method has been applied since 1997 in Victoria.

"Today's decision will be welcome relief for many people who've been dudded on their claims for injury compensation. It demonstrates how the law enables an individual to stand up for his or her rights and prevent a Government from riding roughshod over them. It's a great day for justice" Mr Simpson said.

"The case involved a highly technical issue about the most accurate way to assess spinal injuries. The Guides make it clear that for spinal injuries the structural damage done at the time of injury is the best indicator of long term impairment. The government agencies leant on supposedly independant medical examiners to ignore this provision. Furthermore, the Government chose to ignore their error when it was pointed out to them, forcing Mr Taylor to take his claim all the way to the Supreme Court on two occasions. Needless to say the Government lost on both occasions, but it should never have reached this stage in the first place", Mr Simpson said.

The case was run on behalf of Paul Taylor by Peter Simpson and John Binnie of Belbridge Hague, Albury solicitors. Paul Mulvany, a former Judge of the Accident Compensation Tribunal and now principal partner of Workforce Legal provided assistance as well. Financial assistance for both cases was generously provided by Australian Lawyers Alliance, a body formed by Australian lawyers whose charter is to protect the rights of Australian citizens.

"People who have had a VWA or TAC assessment of their arms, legs, back or neck since 1997 and who had surgery should consider having their assessment reviewed" said Mr Simpson.

It is hoped that the VWA will now accept this decision and not waste further resources by taking it on appeal to the Court of Appeal. After all, Mr Taylor has had to wait 9 years already.

For further information on this media release and associated issues, please contact John Binnie on 02 6051 4666 or Paul Mulvany on 0418 370 584. Click here to view a copy of the judgement [815k].