Below are examples of how we assess claims for compensation for financial loss. These examples are based on real claims we have previously assessed. Some details have been changed to protect the privacy of the claimants.
Read more about how to make a compensation claim for financial loss.
If your claim is about trust money or property please refer to our Fidelity Fund compensation page and examples instead.
Case Study: Joe's claim for withheld documents and wrong advice - not eligible
Joe paid his lawyer $45,000 in legal fees. He says he should be compensated because his lawyer withheld documents from him and his barrister and gave him the wrong advice.
Joe believes his lawyer's actions caused him to lose his court case.
He would like to be compensated in full for his legal fees.
This would not meet our criteria for compensation. We would recommend Joe speaks to another lawyer to find out if he has a case for negligence that can be taken to Court.
Case Study: Raija's claim for cost of a new lawyer - partially eligible
Raija engaged a lawyer to represent her in a family law matter.
Three days before her first hearing her lawyer told her she could no longer take the case and did not provide good reasons for this.
Raija had to find a new lawyer to help her.
Her new lawyer read her file and provided her with legal advice that took a different approach to her case.
Though Raija was not entitled to compensation for the legal fees of the new lawyer, she was entitled to compensation for the costs of the new lawyer obtaining and reviewing her file in the amount of $400.
Raija still had to pay for her new lawyer's legal fees of $12,600.
Case Study: Kyle's claim for the outcome of his family law matter - not eligible
Kyle is unhappy with the outcome of his family law matter. He said no to a settlement offer from his ex-wife of $170,000. Kyle took his lawyer's advice and went to Court instead.
Kyle accepted a reduced settlement amount of $125,000 in court. He says his lawyer's advice was wrong and he is $45,000 worse off.
He would like to be compensated $45,000 by his lawyer.
This does not meet our criteria for compensation. We would recommend Kyle speaks to another lawyer to find out if he has a case for negligence that can be taken to Court.
Case Study: John's claim for the purchase of a new property - we will consider
John has engaged a lawyer to represent him with the purchase of a new property.
The lawyer failed to ensure the matter was ready for settlement, causing a delay by not communicating with the lawyer for the vendor as required.
Due to the terms of the contract of sale, this delay resulted in John being liable for penalty interest of $2,257 payable to the vendor.
John would like to be compensated for the penalty interest incurred.
This is a matter we will consider for compensation and assess.