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Compensation Payouts – The Why and How!!!

Every now and then you will hear in the media of substantial payouts for personal injury claims.

Many settlement figures are confidential, however when they go to court, usually the results are released in the media.

Here are some examples of payouts from Law Firms I have dealt with. Then I will explain why they are what they are, and then finally the how. 6 Examples, 3 clear payouts and 3 ‘resolved’ payouts. After the examples I will explain the big difference.

Angela, mid 30’s when a Motor Vehicle Accident left Angela with soft tissue injuries to her neck, back, shoulder and chest. She suffered abdominal bruising and a psychological injury. Her compensation claim resolved for a sum of $356,000.

Stacy – Car Accident. She sustained an anterior compression fracture to T12, as well as bruising and cuts on the face and arms. She required physiotherapy treatment and performed home exercises, Pilates and yoga to assist with her recovery.

The compensation monies will cover the cost of the client’s ongoing pain relief medication and the cost of Pilates and yoga classes. She can hire domestic cleaners to perform the heavier household chores such as vacuuming, mopping, cleaning the bathroom, which are now difficult for her due to her injury. Payout after fees = $84,227.44

James,  25 years old when he suffered injuries in a Motor Vehicle Accident. James suffered head, neck, back and psychological injuries, as well as damaging his teeth and pelvis. His compensation claim resolved for a sum of $426,000.

Mohammad – Warehouse Supervisor. Our client was employed as a full time Warehouse Supervisor. On the day of the injury he was assisting a contract plumber who was fixing the hot water system. The plumber and our client had to gain access to the top of the internal room using a folding ladder owned by the employer. The ladder was lent against the wall and as our client was descending the ladder when it slipped  from the wall and the client fell approximately 3 metres to the ground.

He sustained an L2 compression fracture (left hip) injury). The payout has compensated him for his loss of full time wages down to part time hours. He may also require fusion surgery in the future and the monies will assist him cover the cost of private surgery and rehabilitation. Payout after fees = $330,000

Ricardo, was in his late 40’s and rear ended by a passenger bus. Ricardo suffered a lower back injury which required surgery, and also a psychological injury due to the incident. His compensation claim resolved for a sum of $1,350,000.

Clinton – Electrician. The client was a qualified electrician. He was employed by a labour hire company and sub-contracted to a host employer on a building site. The claim was brought against his employer, the host employer and the company in charge of the building site. He sustained a Lisfranc fracture of his left foot when his foot got caught on the edge of some plywood that had been laid on the floor of a demountable structure in which he was working.

The payout he received will provide him with some financial security should he be unable to continue his work due to his injuries and need to look for alternate employment or change career paths. The money also allows him to cover the ongoing cost of the orthopaedic shoes he requires to have replaced every 12-18 months due to his injury as well as future medication ie pain relief and any further medical appointments he might require. Payout after fees = $139,573.76


THE BIG DIFFERENCE is three of the payouts show what the client actually received, whereas the other three included Statutory Refunds, Outlays and Professional Fees. Big difference in the numbers as you can see. Later in another post I will explain the process of claims, or contact me now if you want more information immediately.

THE WHY: How the payouts are worked out. Your compensation payout figure is not a guess. The important factors in working out compensation are:

The extent of injury sustained. Is it a long term injury or will the recovery be fairly quick?
The age of the person. The younger you are the more your compensation will always be. It also means you have to put up with the injury for a longer period of time.
Their occupation (Wages). The more you earn the more the future economic losses will be worked out for you.
The health of the injured person at the time of the injury. Unfortunately  the more unhealthy you are the more likely the compensation will be less. 
The person’s pre-injury lifestyle. Pre-existing injuries can complicate payout figures).
The unique instances in your particular accident/injury. Are you a musician, elite athlete, student or professional?

THE HOW: To maximise the compensation you receive representation is needed. Not all lawyers and firms are equal. You have to have confidence that your best interests are at play. Contact me for more information on what to look for in a personal injury lawyer.

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