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Southland Times
Wednesday January 16, 2002
Law firm's fee mode over abuse questioned
by Karen Arnold
A Southland woman who suffered sexual abuse could be
entitled to compensation, despite ACC not advising her about it.
However, the woman who responded to a mailbox
leaflet drop by Christchurch law firm
Wakefield Associates in September is annoyed by the company's fee structure.
The firm encouraged sexual abuse victims to return
a card if they wanted advice on possible entitlements and claims.
The fee for helping clients was 25 percent of any
lump-sum payment obtained from ACC, including backdating, plus GST and the
first of any quarterly payment.
The woman told The Southland Times she was pleased
with the reason behind Wakefield's
offer but was concerned about the fees.
Her initial understanding was that the firm would
take a percentage of any lump sum or the first quarterly payment if no lump
sum was awarded.
Following reports this month that the firm sought a
percentage plus the full first quarterly payment, she contacted Wakefield
Associates and was told her original understanding was correct.
However, the law firm told The Southland Times
yesterday that it was seeking both payments.
The woman said the firm was basically robbing the
pockets of the poor to line the pockets of the rich and making money out of
other people's misery.
"I am happy to make one of the payments but I
don't think it's fair they should take both," she said "With the
GST on top of the lump-sum percentage, that should be enough to cover their
costs. "However, going through Wakefields I may finally get what I have
always been entitled to."
The woman had sent a claim to ACC for counselling
after her abuser pleaded guilty in court and was convicted in 1995.
"I put in the claim and asked if there was
anything I was entitled to," she said. She was not advised of any
further entitlements.
Following her contact with Wakefield Associates,
the woman found out she was possibly entitled to an independence allowance, backdated
and paid as a lump sum.
Wakefield Associates spokesman Garry Wakefield said
there was clear evidence that ACC did not advise claimants of their financial
entitlements when a claim for cover was accepted.
"I think anyone who had been through what
these people have been through should be advised of their correct
entitlements," he said.
"They deserve the compensation, although, of
course, nothing can fully compensate them for what they have suffered."
People had been ringing and returning the authority
to act and were thrilled with the offer, Mr Wakefield said.
ACC said the method by which the sensitive claims
department gave information had improved and was now a lot more detailed.
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