Compensation for the death of a family member: Your legal rights

David Cossalter

Written by:

David Cossalter

Losing a family member is an emotionally devastating experience. When that loss occurs due to someone else’s negligence or wrongful actions, the pain can be compounded by feelings of injustice and anger. During such a difficult time, understanding your legal rights to compensation can provide both a sense of justice and the financial support needed to move forward.

In Australia, various legal pathways exist for family members to seek compensation after a loved one’s death due to negligence. While no amount of money can replace your loved one, compensation can help cover funeral expenses and lost financial support, as well as acknowledge the emotional suffering experienced by surviving family members.

In this article, we’ll explore who is eligible to make a claim, what compensation may cover and key considerations for medical negligence claims. We will also look at important past cases as well as how experienced legal representation can guide you through this challenging process.

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Legal avenues for compensation following a family member’s death

When a family member dies due to negligence or wrongful actions, surviving relatives may have several legal avenues available to seek compensation, including:

  1. Medical negligence claims: If a loved one dies as a result of medical negligence, compensation may be available for the pain and suffering they endured, as well as the impact on their family.
  2. Motor vehicle accident claims: In the case of a fatal motor vehicle accident, claims can be made through insurance or against the at-fault driver, such as Compulsory Third Party (CTP), Motor Accident Insurance Commission (MAIC), or Transport Accident Commission (TAC) claims.
  3. Workplace death claims: In the case of a workplace fatality, compensation options include workers’ compensation death benefits, dependency payments, and legal action against negligent employers or third parties.
  4. Public liability claims: If a death occurs due to unsafe conditions in public or private spaces, such as slip and fall accidents, public liability claims may be pursued.

Who can make a compensation claim?

When a person dies due to alleged negligence, the right to seek compensation does not automatically end with their death. Australian law acknowledges that surviving family members may have relied on the deceased for financial, emotional, or other forms of support, and therefore have experienced loss beyond just their grief.

Eligibility to claim compensation after a death varies slightly across Australian jurisdictions but generally includes:

  • Spouses or de facto partners
  • Children (including step-children and adopted children)
  • Parents
  • In some cases, siblings or other family members who can prove dependency.

Claiming as a family member who witnessed medical negligence

One of the most common types of claims involves family members who have witnessed their loved ones suffer due to medical negligence.

Seeing a loved one endure harm in this way can lead to profound psychological trauma, extending beyond the grief of their loss. Australian law acknowledges this impact through what is often referred to as ‘nervous shock’ or ‘psychiatric injury’ claims.

Legal basis for witness claims

Family members who witnessed medical negligence or its immediate aftermath may have a separate claim if they:

  1. Developed a recognised psychiatric illness (beyond normal grief)
  2. Were present at the time of the negligent treatment or immediately after
  3. Can establish that their psychiatric condition was a reasonably foreseeable consequence of the healthcare provider’s negligence.

It’s important to note that mere distress or sadness, even if severe, is generally not sufficient for these claims. A diagnosable psychiatric condition is typically required.

Examples of eligible scenarios

Situations where family witness claims might occur include:

  • A parent witnessing a child receive negligent treatment during birth or another procedure
  • A spouse observing their partner receive incorrect medication leading to a severe reaction
  • Family members present when a healthcare provider fails to respond appropriately to clear signs of deterioration
  • Relatives who discover their loved one in a severely compromised state due to negligent care.

Evidence required for witness claims

To support a claim as a witnessing family member, important evidence includes:

  • Medical records documenting the negligent treatment
  • Psychiatric assessment and diagnosis of your own condition
  • Documentation of your presence during or immediately after the negligent event
  • Evidence of the impact of your psychiatric condition on your life, relationships, and ability to work
  • Expert medical testimony linking the witnessed negligence to your psychiatric condition.

 

Call us for confidential, free legal advice.

Specific considerations for medical negligence death claims

Pre-existing conditions

You may still have a valid claim even if your family member was seriously ill before the alleged negligence.

Key questions to consider include:

  • Did negligence cause or accelerate the death?
  • Was the patient deprived of a chance of survival or longer life?
  • Would proper treatment have improved quality of life, even temporarily?

Deaths in care facilities

When a death occurs in a nursing home or aged care facility, it may involve both medical negligence and institutional negligence.

Common issues include:

  • Failure to provide adequate monitoring
  • Medication errors
  • Inadequate prevention of falls or pressure sores
  • Neglect of basic needs.

Understanding different types of compensable damages

When a family member passes away due to negligence or wrongful actions, the law provides for compensation that can help ease the financial and emotional burdens left behind. These compensations are generally divided into two categories: economic and non-economic damages.

Economic losses

These are tangible financial losses resulting from the death, including:

  • Funeral and burial expenses
  • Medical expenses incurred before death
  • Loss of financial support the deceased would have provided
  • Loss of services the deceased would have provided (childcare, household maintenance, etc.).

Non-economic losses

These address the emotional and psychological toll caused by the death of a family member. These include:

1. Loss of companionship

Surviving spouses may receive compensation for the loss of companionship and the emotional distress it causes. Similarly, dependent children may be compensated for the loss of guidance and support from the deceased. This compensation acknowledges the non-financial, relational aspects of family life and is available to eligible family members.

2.Nervous shock (psychiatric injury) claims

Family members who witness a negligent event or its immediate aftermath may be eligible for compensation if they suffer a psychiatric injury. To qualify, the claimant must have a diagnosed psychiatric condition beyond normal grief, and the condition must be deemed reasonably foreseeable following the event.

Factors influencing compensation

A family member can generally pursue compensation for non-economic losses if they can prove dependency on the deceased.

The compensation amount is influenced by:

  • Age and life expectancy: Younger dependents with a higher life expectancy may receive higher compensation amounts.
  • Degree of psychological impact: Non-pecuniary (non-economic) damages often relate to mental health issues. More severe psychological impairments usually warrant higher compensation
  • Mitigating factors: Factors such as contributory negligence (where the deceased may have partially caused their death) and expert testimony may influence the claim’s outcome.

 

Find out how much you can claim today.

Time limits for making a claim

Strict time limits apply to compensation claims following a death:

  • Generally, claims must be commenced within three years from the date of death
  • In some jurisdictions, the time limit may be calculated from when the negligence was or should have been discovered
  • For claims on behalf of minors, different timeframes may apply
  • While courts have the discretion to extend time limits in certain situations, this should never be counted on.

 

Considering these constraints, it’s important to consult with a lawyer as soon as possible.

Significant Australian case precedents in negligence death claims

​In Australia, several landmark cases have significantly influenced how negligence claims involving the death of a loved one are handled. These precedents have shaped the legal landscape for pursuing compensation in such tragic circumstances.​

1. Sorbello v South Western Sydney local health network; Sultan v South Western Sydney local health network (2016)

In this case (NSWSC 863), the plaintiffs suffered psychiatric injuries after the birth of their son, who was born profoundly disabled due to medical negligence during delivery. The court awarded damages for nervous shock, recognising the severe psychological impact on the parents.

This case is significant as it highlights the court’s willingness to compensate for psychiatric injuries resulting from witnessing the birth of a child with severe disabilities caused by medical negligence

2. Annetts v Australian Stations Pty Ltd (2000)

The Annetts case involved two parents whose 16-year-old son was sent to work on a cattle station with the assurance that he would be supervised. Instead, the boy was placed in a remote location, became lost, and was later found dead after an extensive search. The parents were informed of his death by police over the phone months later. They claimed to have suffered psychiatric injury as a result of the stress and distress caused by the situation.

The case was significant because it addressed the issue of secondary victims; individuals who suffer psychiatric injury not by directly witnessing a traumatic event but by learning of it.

The High Court ruled that the defendant’s assurances about the safety of the boy were essential in establishing a duty of care toward the parents. The court also moved away from requiring ‘sudden shock’ or ‘direct perception’ for a claim to succeed, stating that these were factors to consider but not prerequisites for liability. This decision expanded the scope for claims by recognising that psychiatric injury could occur from learning about the death of a loved one, even without direct exposure to the traumatic event.

3. Gifford v Strang Patrick Stevedoring Pty Ltd (2003)

In this case, the defendant, Strang Patrick Stevedoring Pty Ltd, employed a forklift driver whose negligence led to the death of an employee who was crushed by the forklift. The deceased man’s three children, aged 19, 17, and 14, and his wife, later claimed to have suffered psychiatric injuries upon learning of his death. This case involved a claim from secondary victims, as the family members were not direct witnesses to the accident but were significantly affected by the news of the fatal incident.

While the mother’s claim was dismissed, the children’s claims were initially rejected under Section 4(1)(b) of the Law Reform (Miscellaneous Provisions) Act 1944 (NSW), which required claimants to have witnessed the event or its immediate aftermath.

The High Court, however, ruled that a duty of care could extend to family members who had a close, loving relationship with the victim, even if they didn’t witness the event. The Court recognised that it was foreseeable that children could suffer psychiatric injury upon learning of a parent’s death in such tragic circumstances.

At the time, Section 4(1) allowed for claims by family members who were close to the victim, even if they didn’t directly witness the incident. This provision was later replaced by the Civil Liability Act 2002 (NSW). The Court’s ruling expanded the scope of liability for psychiatric injury, particularly for family members of workplace accident victims, even when they were not present at the scene.

This case is significant in broadening the ability of close family members to claim for psychiatric injuries and set an important precedent for future claims involving nervous shock or wrongful death due to negligence.

Our past successful cases for nervous shock claims

Claims for pain and suffering alone can result in settlements of up to $650,000.

Below, we explore past cases and the outcomes of various claims related to the wrongful death of loved ones, where relatives have pursued claims for nervous shock.

TypeCase detailsSettlement
Aged care home negligenceA man’s father died in an aged care home from sepsis, allegedly caused by a nurse’s mishandling of a catheter. The nursing home was initially reluctant to provide records related to the deceased’s care. Despite this, the plaintiff pursued legal action, resulting in a settlement for the plaintiff’s anxiety and depression.$116,500
Medical negligenceA man presented to a hospital in NSW with sharp left-sided chest pain on 13 July 2019, following a similar pain the day before. Despite initial treatments for a suspected heart attack, the decision was made to administer thrombolytic therapy, which led to intracranial bleeding and the patient’s death. The family received compensation for psychological distress.$500,000
Hospital negligenceA Western Sydney woman’s daughter, who had cerebral palsy and a ventricular-peritoneal shunt, passed away in 2012 due to a failure to diagnose and treat appendicitis. Despite presenting with typical symptoms, the daughter was wrongly discharged from a hospital without further investigation. This led to an untreated appendicitis that caused an abscess, which obstructed the shunt and resulted in her death. Following legal action and expert medical opinions, the hospital settled with the family for $150,000 in compensation for its negligence and the psychological distress caused to the plaintiff.$150,000

Frequently Asked Questions

Yes, it is possible to make a claim for psychiatric injury, even if you did not directly witness the negligence or the event itself. The Court recognises that close family members, such as children, could suffer psychiatric injury upon learning of a loved one’s death due to negligence, even if they were not present at the scene of the accident.

However, it is important to note that each case is different, and legal advice is recommended to understand the specific circumstances of your situation. At GMP Law, we offer a free initial consultation to help you explore your options.

Yes, in Australia, certain family members can pursue medical negligence compensation claims after a loved one has died due to suspected medical malpractice. These claims fall under what are often called ‘dependency claims’ or ‘wrongful death claims,’ depending on the jurisdiction.

Determining whether medical negligence contributed to a death often requires expert analysis. 

Warning signs may include:

  • Unexpected complications following routine procedures
  • Medical staff appearing evasive about what happened
  • Conflicting explanations from different healthcare providers
  • Discovering that standard protocols weren’t followed
  • Learning that similar incidents have occurred at the same facility.

 

A specialised medical negligence lawyer can help evaluate your case and obtain expert medical opinions to determine if negligence occurred.

Deaths in nursing homes or aged care facilities may involve elements of both medical negligence and institutional negligence.

Potential claims might address:

  • Failure to provide adequate medical care or monitoring
  • Medication errors or inappropriate chemical restraint
  • Inadequate prevention or treatment of pressure sores
  • Failure to prevent falls or other accidents
  • Neglect of basic needs like nutrition and hydration.

 

In addition to compensation claims, these cases may warrant reporting to regulatory bodies like the Aged Care Quality and Safety Commission.

While court proceedings may be filed in many cases, the majority of medical negligence claims settle before reaching trial.

Factors affecting whether court attendance will be necessary include:

  • The complexity and value of the claim
  • Whether liability (fault) is disputed
  • The reasonableness of settlement offers
  • The approach taken by the healthcare provider’s insurers.

 

Even when formal proceedings are initiated, pre-trial settlement remains the most common outcome. Your lawyer will prepare you for any court appearances that may be necessary.

Why choose GMP law for your personal injury claim

Proven track record

With 35 years of experience, we have successfully represented clients in personal injury cases across Australia, including:

  • 35,000 victories and counting
  • $4 billion in claims won
  • Successful verdicts in contested court proceedings
  • Recognition from peers for our expertise in this field.

Client-centred approach

We recognise the physical, emotional, and financial toll that injuries have on individuals and their families.

Our commitment to our clients includes:

  • Free initial consultations to assess potential claims
  • No Win No Fee arrangements
  • A 90-day exit period for added flexibility
  • Regular and clear communication throughout the process
  • Compassionate support from start to finish
  • Focus on maximising compensation in the shortest possible time.

We are the only Australian firm that stands behind our service with a written cost reduction promise, offering you complete peace of mind with your claim. We are committed to delivering expert legal guidance with empathy and care, and will work tirelessly to achieve the best possible outcome for our clients.

 

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Meet the diverse and dynamic team of compensation lawyers and supporting staff that have made this all happen below. Our multi-lingual team can discuss your claims in Arabic, Assyrian, Turkish, Greek, Italian, French, Serbian, Croatian, Armenian, Mandarin, Hindi, Punjabi or Malayalam.

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