VIC Being sued for a grossly inflated smash repair.

[scrambledeggs]

I'll try and make this as concise as possible.

A little while ago I had a minor accident with a taxi in Melbourne. The result of which left both of our vehicles with a 5cm tear in our respective bumpers. (it was a nose to tail - I drifted forward while stopped at a traffic jam while lanes were merging etc).

I duly exchanged details with the driver and took a photo of both vehicles.

A few weeks later, I was contacted by a law firm representing the taxi owner demanding close to $10,000 for the damage. This included replacement of a tail lamp, boot lids, quarter panel damage repair etc.

I surmised (rightly or wrongly), that I was being 'done over' so I chose to ignore this spurious claim. I wold have been happy to deal with a reasonable claim for the repair for a very minor accident but this was such a gross exaggeration that it left me unwilling to even contemplate responding.

Fast forward to the present day and I have received a Complaint Form 5A in the Magistrates Court of Victoria for the amount plus costs etc.

(I suspect that the amount was inflated in order to be able to sue me in the Magistrates Court in the first place, the threat of which would have brought most people to the bargaining table.)

I just wanted to get some advice on my next steps. I still have the photos of the damage and my car was never repaired.

I firmly believe there is an element of fraud here as the photos I have of the accident do not bear out the repair quote that I received.

As an aside my surname is misspelled slightly in the court documents but I do not think this is something to hide behind.

Thanks in advance for any advice.

 

[Tim W]

In the normal course of events, you would refer the matter to your own insurer.
I suspect however, that you don't have one.
That is, that your own car is not insured.
Which means that the text below may be relevant to your situation...
It's written as though you don't have insurance.


Basically the way it typically goes is....

1. The other driver claims on their insurance.
Their insurer pays their claim (perhaps minus any excess).

2. The insurer then sues the you (that is, you personally)
to recover their loss (ie the money they paid out in the claim).
This can happen in the name of their insured, or in their own right.
It usually starts when you receive a thing called a Letter of Demand.
That letter will say something like
"Pay us x dollars by date Y or we will take you to court".
Their insured is no longer involved. This is now between you and their insurer.

3. At this point, you go to see a lawyer of your own.
Yes, this will cost you money, and no, this is not work
for which either Legal Aid, or "No Win No Fee", applies.

4. You make an offer to settle the matter. They reject it.
You then end up in court, where you probably lose.
You receive an order to pay the insurer. And probably the insurer's costs.

5. This is what happens to people who drive uninsured cars.
Basically, you gambled the false economy of saving the insurance premium
against your being personally liable in the even of an accident,
and you lost.

6. If you don't have comprehensive (or even TPP) insurance, then this is going to cost you - personally - dozens of thousands of dollars. It's probably time to start preparing.