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$835k in damages to worker suffering psychological injury

Case Overview

Our client suffered a serious psychological injury as a result of threats and abuse he received from a colleague during the course of his employment.  

The worker advised senior management of the threats that had been made against him. He also reported the threats to the police. The employer spoke to the employee who had threatened the worker, however re-assigned our client to work with this person. Our client suffered psychological injury and was incapacitated for work.  

Our Approach

We arranged for our client to be assessed for whole person impairment. We then made a claim for permanent impairment compensation (or section 66 compensation) on his behalf. The workers compensation insurer disputed the degree of impairment however it was ultimately determined by the Personal Injury Commission that our client had 19% whole person impairment as a result of his injury. 

Having established his impairment met the 15% whole person impairment threshold, we received instructions to make a claim for Work Injury Damages against his employer. 

A Work Injury Damages claim is a common law negligence claim against the employer and is separate to a workers’ compensation claim. Under workers compensation legislation the damages that can be claimed under a Work Injury Damages claim is restricted to past and future economic loss (ie earnings loss) and loss of superannuation on those losses. A successful Work Injury Damages claim entitles the worker to receive one damages sum in full and final settlement of their workers compensation entitlements. 

After receiving our client’s instructions, we served notice of a claim for Work Injury Damages on the employer and its workers compensation insurer. The insurer denied liability for the payment of damages and asserted our client’s injury was not caused by a breach of the employer’s duty of care. They also alleged our client had capacity to return to work and that his claim was outside the 3 year time limitation period and, therefore, statute barred. 

We did not accept the insurer’s position and, after reviewing over 1,650 pages of clinical records, reports, and factual materials, and obtaining several expert reports covering injury, liability, loss, and damage, we served the insurer with a pre-filing statement claiming damages for breach of duty of care. 

The insurer maintained its decision to dispute liability for our client’s claim, so we filed proceedings in the Personal Injury Commission and the matter proceeded to Mediation. 

We were confident of a successful outcome at Mediation given the thoroughness of our preparations. And, despite the insurer’s previous denial of liability, we successfully resolved the matter in our client’s favour at the Mediation, with the workers compensation insurer agreeing to pay our client $835,000 by way of damages. 

The Result

Workers compensation insurer paid our client $835,000 in damages.

Commitment, Guaranteed

While no sum of money can compensate a worker for the impact an injury has on their life, their family, and their loved ones, we were determined to achieve the best possible result for our client and assist him regain control over his life and continued recovery. 

Our client was delighted with the result. He was grateful for the early resolution of his claim, which avoided the inevitable delay, added cost, risks, uncertainties, and anxieties associated with proceeding to a contested court hearing. Our client informed us that settlement of his claim was something that he needed for his mental health and was confident the money he would receive would help him turn his life around. 

If you have suffered a psychological injury at work or know someone who has, be sure to contact Gerard Malouf & Partners on 1800 205 909 for a free consultation to assess your rights and entitlements. 

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Chris Lehmann

Special Counsel
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Gerard Malouf & Partners have provided friendly, experienced legal advice to communities across Australia for over 35 years. Our Personal Injury Lawyers have taken on ten’s of thousands of cases and we are proud to have won billions of dollars for our clients.
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Meet the diverse and dynamic team of compensation lawyers and supporting staff that have made this all happen below. Our multi-lingual team can discuss your claims in Arabic, Assyrian, Turkish, Greek, Italian, French, Serbian, Croatian, Armenian, Mandarin, Hindi, Punjabi or Malayalam.
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Meet the diverse and dynamic team of compensation lawyers and supporting staff that have made this all happen below. Our multi-lingual team can discuss your claims in Arabic, Assyrian, Turkish, Greek, Italian, French, Serbian, Croatian, Armenian, Mandarin, Hindi, Punjabi or Malayalam.

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