Simple Accident Claim not Fully Explained

Compensation for accidents claims can be complex and difficult to work out. In some cases the issue of who is at fault may not be clear cut and it could take time to collect the evidence to determine the facts of the accident.

In other cases the injuries sustained may take some time to develop and until that happens, no one is really sure of the entire extent of the damage, and thus what would constitute a fair amount of compensation. However in a few cases some things seem to be pretty clear cut, in which case determining liability and settling the case should be a fairly rapid process. This is what was thought about John Dai’s case of a simple road traffic accident, but it turned out to be a lot more complicated due to actions by his lawyers. 

John Dai, from Australia was hit from behind by another car whilst slowing for traffic lights in his station wagon. He had been on his way to work, at a computer accessory company when the accident had happened. The case was simple enough as the other driver was clearly at fault, all that needed to happen was to arrange compensation through the insurance companies. Although Mr Dai held Australian residency his English abilities were limited so he sought the services of a solicitors firm which offered a translating service so he can understand the case in his native Chinese language. Throughout the case Mr Dai kept abreast with all the paperwork and attended the various necessary meetings. When his case was finally settled he attended a settlement meeting with his lawyers and was presented with a check for $155 thousand Australian dollars. Mr Dai confirmed with his lawyers at the time that this amount was all that was due to him and his lawyers agreed. However when re-checked his paperwork from the case he sawa figure of $240 thousand dollars in a letter about a compromise offer with the insurer. Mr Dai wanted to double check the figure so went back to his lawyers but nothing changed.

Mr Dai only found out the truth of how much he received in compensation when a year later he applied for a health card but was told that he was not eligible because of a lump sum of $375 thousand dollars he had received due to the crash. This was a huge shock as Mr Dai had never been aware of the full amount paid out for the accident claim. When signing the final documentation there had been no mention of the legal fees his lawyers were going to charge him and Mr Dai never received a bill. Adding the amount of compensation Mr Dai actually received, to necessary state costs still left $125 thousand dollars unaccounted for.  The Lawyers in question say the case file has now been lost meaning finding the truth of the missing money’s whereabouts is going to be difficult. This story serves to remind victims of accidents to agree on legal costs prior to making the claim for compensation.