Luo and National Disability Insurance Agency [2024] AATA 3402 (Link to JADE).
Mr Luo had settled a medical negligence claim for $4 million plus costs. There was a shortfall in recovery of his costs, in that once the defendants had paid an amount towards his costs, there remained $350,000 owing to his lawyers which was deducted from the settlement sum paid to him.
A compensation recovery amount was calculated by the NDIA by reference to the sum of $4 million settlement (not including the amount paid by the defendants for costs but less Medicare / Centrelink), however Mr Luo argued that the $350,000 unrecovered costs amount should also be deducted.
The Tribunal did not accept that argument, having regard to the National Disability Insurance Scheme (Supports for Participants-Accounting for Compensation) Rules 2013 (Cth).
Mr Luo made a secondary ‘special circumstances’ argument. The main reason Mr Luo was not able to meet his care and support needs from his settlement was because most of the settlement had been spent on a house. The Tribunal did not accept that to give rise to special circumstances.
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