Legal Services in Road Traffic Injury Compensation Claims: Who Uses Them?

This post summarises a new study that has just been published in the University of New South Wales Law Journal that looks at the socio-demographic, crash, injury, and recovery factors that are linked to legal service use among people who claim compensation for road traffic injuries. The article is part of my PhD work at Monash University, which looks at claimant legal service use in injury compensation schemes.

This article has been published with my supervisors Drs Janneke Berecki-Gisolf, Becky Batagol, and Genevieve M Grant.

Background: Personal Injury Legal Problems

Personal injury is one of the most common types of legal problem that people experience. A legal problem is a problem that can be resolved using the law. A personal injury is a harm to a person for which compensation can be claimed; this harm can be the result of a road traffic crash, workplace injury, product fault, or other occurrence.

Research by the Law and Justice Foundation of New South Wales shows that seven per cent of Australians aged 15 and above experience a personal injury legal problem within a 12-month period. One fifth of these people sustain their injuries in road traffic crashes. Road traffic injuries are linked to a number of negative outcomes (beyond the injuries themselves) including loss of income and financial strain, stress-related illness, relationship breakdown, and moving house.

Compensation for Road Traffic Crash Injuries

In Australia, compensation for road traffic injuries can be accessed by lodging a claim through the relevant insurer. In Victoria, this insurer is the Transport Accident Commission (TAC).

People who claim compensation for road traffic injuries engage lawyers to help them to access benefits, including through navigating the claims process and resolving disputes with insurers. Because of this, lawyer use is linked to access to justice (or the extent to which claimants can enforce their rights through fair and open processes). But, surprisingly, little is known about the characteristics that are linked to lawyer use in compensation schemes. The role of injury severity and recovery outcomes is especially unclear.

New Empirical Research on Lawyer Use in Compensation Schemes

This study used TAC compensation claims and payments data to look at how much claimant lawyer use was explained by (a) injury severity, (b) individual-level socio-demographic, crash, and injury factors, and (c) short- and long-term recovery outcomes in the TAC scheme.

The study found that although injury severity and other socio-demographic, crash, and injury factors shape claimant decisions about engaging lawyers, the experience of negative recovery outcomes (such as time off work, mental health issues, and/or pain issues) plays by far the most important role.

Because information about injury severity was only available for claimants who had been hospitalised, those who had and had not been hospitalised had to be looked at separately. In the hospitalised group, claimants with more severe injuries were more likely to use lawyers. In both the hospitalised and non-hospitalised groups, the other factors that were linked to lawyer use are shown in the image below:

Scollay diagram march 2020

What Does This Mean for Access to Justice?

This study shows which claimants are likely to need and use lawyers in compensation schemes.

One interesting finding is that socio-economically disadvantaged claimants, who tend not to seek legal advice outside compensation schemes, tended to seek legal advice in the TAC scheme. That is, disadvantaged clients were more likely to seek and obtain legal advice. This finding differentiates access to justice in the compensation scheme context from the rest of the civil legal system. One possible explanation is that personal injury lawyers often provide their services on a ‘no win, no fee’ basis, which takes away cost barriers for disadvantaged claimants. Understanding what leads to better access to justice for this group in the TAC scheme could improve access to justice for this group in other settings.

The study also shows that there are opportunities to improve access to justice in the TAC scheme in some groups, for example among young claimants.

 

You can find the full advance copy of the article here (open access).

The full citation for the article is Clare E Scollay, Janneke Berecki-Gisolf, Becky Batagol and Genevieve M Grant, ‘Claimant Lawyer Use in Road Traffic Injury Compensation Claims (Advance)’ (2020) 43 University of NSW Law Journal.

 

Sexual harassment claims are costly and complex – can this be fixed?

This article was originally published in The Conversationon 6 March 2019. 

The #MeToo movement has reminded us that sexual harassment has not gone away. The legal tools we’re using are not working and may even be hiding the true extent of the problem.

Most sexual harassment complaints are resolved confidentially at the Australian Human Rights Commission (AHRC) or its local equivalents. Few go to court. This system has three fundamental problems.

kate jenkins

Sex Discrimination Commissioner Kate Jenkins, speaking at the CSW63 Side Event – Consigning sexual harassment to the dustbin of history – what it would take to achieve cultural change, March 2019. Photo Credit UN Women (CC BY-NC-ND 2.0)




Read more:
Rape, sexual assault and sexual harassment: what’s the difference?


Confidential processes and settlements

Confidentiality is essential to get people to the negotiating table. Who can forget the media scrutiny actors Geoffrey Rush and Eryn Jean Norvill were subjected to?

Even for people who are not famous, the potential media interest in a sexual harassment claim is a strong reason to settle, as it is for employers who fear reputational damage. But it means the community isn’t aware that sexual harassment is still occurring or how it’s being addressed.

Employers usually insist on a confidentiality clause when they settle a claim. I recently interviewed 23 lawyers in Melbourne, asking them how common confidentiality clauses are in discrimination settlements.

A solicitor told me settlement agreements “almost always” include confidentiality. Another described the confidentiality clause as “not negotiable”. A barrister said: “No one I know has ever settled on non-confidential terms.”

The lawyers said employers use confidentiality clauses to avoid opening the “floodgates” to other victims. Employees seek confidentiality if they have left the workplace and worry about what their former employer might say about them.

At their most extreme, confidentiality clauses have a chilling effect on victims, who fear the repercussions of discussing any aspect of their claim. At the same time, they protect the perpetrator at their current workplace and anywhere they work in the future.

A complex, costly legal system

Making a legal claim is complex and costly. A woman who has been sexually harassed could use her local anti-discrimination law or the federal system. The federal system is costly because if she loses at court not only will she have to pay her own legal costs, she risks having to pay the other side’s costs too.

If she’s been discriminated against, unfairly dismissed or has a worker’s compensation claim, three more legal avenues are open to her. These vary in terms of costs, procedures, time restrictions and levels of formality, so they’re difficult to navigate without legal assistance.

It’s not surprising, then, that most people don’t use the formal legal system and those that do tend to settle.

Individual burden

There is no equivalent of the Australian Securities and Investments Commission (ASIC) or the Australian Competition and Consumer Commission (ACCC) that can prosecute employers or represent victims, so the person who has been sexually harassed bears a heavy burden. As one of the lawyers I interviewed put it, the victim has to do “all the heavy lifting”.

Respect@Work

This week, the AHRC released Respect@Work, a lengthy report on sexual harassment. It made 55 recommendations, many of which are designed to improve the legal framework. Will they resolve these weaknesses?

In terms of shedding light on the prevalence of sexual harassment, the recommendations include that the AHRC and its local equivalents should collect de-identified data about sexual harassment claims and settlement outcomes, share this data and prepare coordinated annual reports. This is significant because at the moment they only release numerical annual complaint data. They don’t publish anything about the nature of claims or settlements. Acknowledging that some parties want confidentiality, the AHRC will develop “best practice” principles, which might include preparing a model confidentiality clause and making some disclosures permissible.

Lawyers told me they negotiate damages payments in excess of what courts are likely to order. Because settlements are confidential, they have no impact on the courts’ understanding of the harm of sexual harassment, and victims and their lawyers don’t have a realistic starting point for negotiations. It is pleasing that the AHRC has recommended the government conduct research on damages awards and that this should inform judicial training.

Lawyers repeatedly told me the risk of costs is the main reason victims don’t use the federal system. The AHRC recommended a losing party should only have to pay the other side’s legal costs if their claim is vexatious, which is how the Fair Work system operates. The government should act to remove this barrier right away.

The recommendations to increase funding for community legal centres and bring consistency to federal and local sexual harassment legislation (including adding sexual harassment to the Fair Work Act) will reduce the cost and complexity of the system.




Read more:
Geoffrey Rush’s victory in his defamation case could have a chilling effect on the #MeToo movement


But a problem remains – the burden still rests on the victim. The AHRC has proposed establishing a Workplace Sexual Harassment Council comprised of federal and local equality and workplace safety agencies. But this is a leadership and advisory body, not an enforcement agency.

The AHRC president is conducting an inquiry into reforming discrimination law. Changing the enforcement model and alleviating the burden on the victim must be considered as part of this broader project.The Conversation

Dominique Allen, Senior Lecturer in Law, Monash University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

Put that in your Diary: National Mediation Conference 2021

We now know the date as well as the location of the next National Mediation Conference. Now’s the time to put it on your diary. NMC is a practitioner-focused conference with a strong academic edge, covering all areas of dispute resolution. You can see the details of the last NMC here.

The next NMC will be held in Alice Springs, Northern Territory from 1-4 September 2021. Importantly, the conference will be hosted on the grounds of Desert Knowledge Precinct, a beau­ti­ful 73 hectare prop­er­ty on the South Stu­art High­way, 8km south of the Alice Springs CBD.

alice springs

Spectacular Alice: ANZC by Ayi Lui (CC BY-NC-ND 2.0)

A copy of the press release from Prof Laurence Boulle, Chair of the NMC is posted below. Both Laurence and  Alysoun Boyle are members of the ADRR Network and are planning the 2021 conference.

The directors of the National Mediation Conference Ltd acknowledge the Traditional Owners of country throughout Australia, and in the context of this announcement especially the Western Aranda and Central Arrernte peoples of the Alice Springs region.  We recognise their connection to land, waters and culture, and we pay our deep respects to their Elders past, present and emerging.

In this regard the NMC is delighted to announce that the Desert Knowledge Precinct Partners (Centre for Appropriate Technology, Batchelor Institute of Indigenous Tertiary Education, Desert Knowledge Australia and the Desert Peoples Centre)  have issued an invitation to us and the dispute resolution community to hold NMC 2021 at their facilities in Alice Springs (https://www.dka.com.au/activities/dk-precinct).

The NMC directors have accepted this invitation and would also like to acknowledge the valuable assistance from the Northern Territory Business Events Support fund for NMC 2021.

The Welcome Reception for the conference will be on the evening of Wednesday 1 September 2021 and the event will run over the following three days, namely 2, 3 and 4 September.  In setting these dates the NMC Board has taken into account the timetable of The Ghan train from Adelaide to Alice Springs, and return.

Please save these dates and spread the word for an innovative, stimulating, and inspiring conference in the heart of the country.

The NMC Board is currently appointing a Design Committee to plan the conference and is commencing a formal process for selecting a Professional Conference Organiser. In due course, the Design Committee will start providing regular updates on all aspects of the conference.

Now it’s time to Save the Date and start preparing for a superb engagement in a wondrous setting.

See you in Alice.

Professor Laurence Boulle AM

Chair, NMC Board                                                                                                                            3 March 2020