Peter Ellis web site - Christchurch crèche case


ACC Compensation for Sex Abuse - Index

 

2002 Index 

 




The Press
January 9 2002

Law firm in bid for sex abuse cases
By Andrew Moffat

A Christchurch law firm has sent out one million leaflets touting for business from sexual abuse victims entitled to new ACC payments.

Critics say the initiative highlights ACC's vulnerability to fraudulent claims, especially since claimants neither have to complain to the police nor name their abuser.

Christchurch law firm Wakefield Associates, a one-principal law firm in Riccarton specialising in ACC claims, has done a nationwide mail-out urging victims of sexual abuse to use its services.

The leaflet points to victims potentially being eligible for one-off payments of up to $25,000 and ongoing sums in excess of $150,000. The law firm charges 25 per cent of any lump sum payment, plus all of the first quarterly payment.

The firm's move anticipates the Injury Prevention and Rehabilitation Act, which comes into force in April. It reintroduces a lump sum scheme similar to the one dumped by the previous government.

When lump sum payments for sexual assaults were last available the number of claims rose from 221 in 1988 to 13,000 in 1993, when the payments were abolished.

Dunedin author Lynley Hood, whose book on the Christchurch Civic Creche case, A City Possessed, casts doubt on claims made under the previous lump sum scheme, said the reintroduction of the scheme left the door open for widespread abuse.

The reliance on counsellors who were poorly trained to diagnose genuine sexual abuse meant there were few checks to prevent people making fraudulent claims: "It really creates a gravy-train effect."

Victoria University criminologist Willem de Lint said that judging by the past, the new legislation would cause a budget blowout. "The problem is that people will follow the money. People followed the money then, and there's no reason to suggest they won't follow the money again," he said.

The Government predicts the lump sum scheme will cost $60m a year.

ACC national claims unit manager Gail Kettle said sexual abuse claimants had to fill out a form with the help of their counsellor or general practitioner. While any claims process was open to dishonesty, the integrity and skills of counsellors and doctors were an adequate safeguard against false claims, she said.

"What we require is a detailed report and the mental injury they are suffering from. From that we accept or reject the claim," she said.

The agency had received many calls about the leaflet, which had opened old wounds for many sexual abuse sufferers.

"A lot of people who have suffered sexual abuse have found it (the leaflet) offensive and distressing."

Claimants did not need to use a lawyer to apply for entitlements, she said. Information was freely available on request and all claims were dealt with sensitively.

Wakefield Associates principal Garry Wakefield declined to be interviewed yesterday but issued a statement explaining the leaflet drop.

Mr Wakefield said ACC did not "proactively" inform sexual abuse victims of their entitlements and it was important they were not neglected.

"I think anyone who has been through what these people have been through should be advised of their correct entitlements. They deserve the compensation although, of course, nothing can fully compensate them for what they have suffered."

It was possible ACC was trying to discourage claimants from using its service because of cost implications.

"If ACC had properly advised claimants of all entitlements, particularly financial, then we wouldn't have to go out and do it," he said.

Canterbury District Law Society president Robert Perry said he could not comment on the specific case because doing so could prejudice a possible complaint.

Advertising by a law firm was governed by the rules of professional conduct for barristers and solicitors, and as long as it adhered to general advertising standards, a mailout was not a problem.