After 25 years, legislation has finally been passed to increase the amount of compensation the NSW District Court can award an injured person. The RMB Compensation Division explains.
Inflation is dominating the current news cycle. Fuelled by the re-opening of our society after COVID lockdowns and global cost pressures due to the war in the Ukraine, high prices for many items from groceries to fuel are causing cost of living pressures on individuals and families.
As these prices rise, the Reserve Bank of Australia is increasing interest rates, placing increasing mortgage pressure on families.
While the cost of living and mortgage repayments are going up, one thing that had not gone up in 25 years until recently was the NSW District Court’s jurisdictional limit – that is the maximum amount the District Court could award an injured person who has brought a claim.
For many years, the District Court could award a maximum of $750,000 in damages. This may sound like a lot of money, but in some circumstances it is not so much when considering a person may have the right to compensation for lost income, non-economic loss (pain and suffering), medical costs and the costs of personal care. That can all add up quickly, particularly if the injured person is young and facing many years impacted by the injury.
And the value of $750,000 today is certainly a lot less than it was 25 years ago!
If a personal injury claim was potentially worth more than $750,000, it would have to be determined by the Supreme Court of NSW. Bringing an action in the Supreme Court of NSW has key disadvantages for people living in regional areas. Supreme Court hearings are usually held in Sydney, whereas District Court hearings are regularly held in Wollongong and other regional centres across NSW.
The Supreme Court legal process is also slightly more complex, increasing the potential legal costs of taking a matter to hearing.
The State Parliament has passed legislation amending the limit of maximum damages the District Court can award from $750,000 to $1,250,000. The legislation passed the NSW Legislative Assembly on 9 November 2022 and has now become law in NSW.
This is an important step forward, as more injured people will now be able to issue their claim in the District Court, rather than being required to go to the Supreme Court, making it easier for injured people to achieve justice closer to home and relatively more quickly.
If you require further information, or simply need advice from experienced professionals, your first step should be to contact our office to arrange a free consultation. You can contact us by by phone or our 'Ask a Question' tool on our website.