NSW Taxi entanglement

[suzette maison de bois]

My daughter ran in to the back of a Taxi. She took photographs of the Taxi and her car which show minimal damage to both. Both drivers agreed that no action was necessary and the Taxi driver, drove off.
She has received a Letter of Demand for the amount of $14,000.
The Letter of Demand did not include an invoice for the repairs but it was later supplied. Should a Letter of Demand detail the claim? The invoice damage details extensive repairs and she is concerned there is fraud involved.

 

[Nighthelyn]

Dear Suzette maison de bois,

Firstly - your daughter is well recommended to not make any admission, by action, verbal or in writing, to admit liabilities. Your daughter’s options are severely more limited if there is any evidence of admission.

Secondly, if your daughter has comprehensive car insurance (which cover car property damage), and the excess is below the claim/otherwise no reason not to make a claim, consider make a claim and let your insurer deal with the matter.

Thirdly, if there is only CTP insurance which does not cover the damage to the other vehicle, then it is usually better to respond to a letter of demand and:
- write “without prejudice” on top of any letter if you don’t want your letter to be used as evidence, if the matter goes to court;
- if the other driver is insured, you may get a letter from their insurer - the process is the same, but given the size of the claim if you have concern that the other driver’s insurer was not treating your daughter fairly she should contact AFCA if there is any ground for a complaint;
- if you disagree with the cost of repairs, you can get an independent quote;
- usually but not always the driver that hit someone from behind is at fault - if your daughter are partly at fault, offer to pay a reasonable cost;
- if you are unable to negotiate directly with the other party, consider contacting NSW Fair Trading for a mediator’s service; and
- if you do settle, make sure the agreement is written down and signed by both parties and any such agreement should refer as full and final settlement of the dispute.

Fourthly, if negotiations fail, your daughter’s next option is court action. Seek legal advice because if your daughter loses, she may incur both the cost and other party’s costs including legal costs.

If your daughter needs more help, in addition to private solicitors, she can consider contacting Lawaccess 1300 888 529. If there is issue with insurance of dealing with the other driver’s insurer, National Debt Helpline 1800 007 007 can refer to law services that can provide free advice.

Good luck!

-Nighthelyn