When Legal Representatives Cause Harm: Misconduct in Workers Compensation Cases

Mar 30

6 min read

The Vulnerable Position of Psychological Injury Claimants

We do not believe psychological injuries should be managed in any shape or form within the Workers' Compensation Schemes throughout Australia. These schemes were not originally conceived to manage psychological injuries and mental health, and the system is so fundamentally flawed that lives are being lost due to what can only be described as egregious abuse of Human Rights, the scale of which will eventually bring shame to this country.

Workers' Compensation Insurance and Mental Health Are Not Compatible

We are also entirely missing the point about trying to stop the escalation of costs within the system as the real issue is the abuse of the injured within the system.

Workers compensation claims involving psychological injuries continue to place claimants in uniquely vulnerable positions—positions they cannot defend themselves from or even escape. Unlike physical injuries with visible symptoms and clear diagnostic pathways, psychological injuries require claimants to navigate complex emotional terrain while simultaneously dealing with legal processes. They are required to do this while suffering significant cognitive impairment.

This vulnerability can be exploited even by lawyers when injured and ill people are subjected to abuse by their own legal representatives, who fail to maintain proper professional boundaries or conduct themselves inappropriately. The text messages and communications shown below are not the only examples of lawyer abuse we have heard injured workers being subjected to. It is a disgrace to the profession and needs to be addressed immediately.

Many forms of psychological torture methods attempt to destroy the subject's normal self-image by removing them from any kind of control over their environment, isolation, monopolising of perception, impression of almightiness, creating a state of learned helplessness, psychological regression and depersonalization. Other techniques include humiliation, forced nudity and head shaving, exhausting by sleep deprivation, hooding and other forms of sensory deprivation.

Unprofessional Communication and Boundary Violations

Communication between legal representatives and clients should always remain professional, respectful, and focused on the legal matter at hand. Unfortunately, some lawyers cross these boundaries, as evidenced by inappropriate messages that can range from unprofessional to outright abusive.

This can be particularly damaging in psychological injury cases, where clients may already be experiencing emotional distress, anxiety, or trauma. Unprofessional communication can exacerbate these conditions and create an environment where clients feel unable to advocate for themselves effectively.

The Power Imbalance: Domestic Violence Dynamics in Professional Relationships

Of particular concern are situations where legal representatives engage in relationships with clients that mirror domestic and family violence (DFV) dynamics. The power imbalance inherent in the lawyer-client relationship can be exploited, creating situations where:

Clients feel trapped or dependent on their lawyer
Professional advice becomes entangled with personal control
Threats or intimidation tactics are used to maintain control
Client autonomy and decision-making is undermined

These dynamics are especially harmful in psychological injury cases, where they can trigger or worsen existing trauma responses.

TEXTS FROM CLIENT LAWYER

The above texts are all from the same lawyer writes: "Please be advised that the writer is disentitled to practice a lawyer and no longer works as a lawyer." He is also referred to in Court Action as the client's husband. He was not. The Legal Services Commissioner did nothing about this. He had impersonated the woman in an email late one nite at home to her employer that resulted in multiple court actions. The employer wrote to her and told her to move on. He was sure she 'would benefit.' (The without prejudice email is from the employer lawyer after he had filed action against the woman, not the lawyer, for her lawyer's conduct among other issues. Note: it talks to work place injury).

Despite the employer knowing about this, they continued to abuse the woman too. This is why we must address misogyny in systems. The Workers' Compensation System is a prime example. Violence against women is never acceptable.

Unauthorized Legal Practice and Misrepresentation

Another concerning issue is lawyers who continue to practice despite being disqualified or those who misrepresent their qualifications or authority to act in certain matters. When a lawyer is "disentitled to practice" yet continues to represent clients, this constitutes a serious ethical breach with potential legal ramifications.

For workers compensation claimants, discovering that their legal representative was not properly authorized to practice law can lead to:

Invalidation of legal advice received
Potential procedural errors in their case
Additional stress and uncertainty during an already difficult time
Possible financial consequences if fees were paid for unauthorized services

The Power Imbalance: Domestic Violence Dynamics in Professional Relationships

Clients feel trapped or dependent on their lawyer
Professional advice becomes entangled with personal control
Threats or intimidation tactics are used to maintain control
Client autonomy and decision-making is undermined

These dynamics are especially harmful in psychological injury cases, where they can trigger or worsen existing trauma responses.

The Impact: Fear of Legal Representatives

The cumulative effect of these misconduct issues can be a pervasive fear of engaging with the legal system, at all. Clients who have experienced unprofessional behavior, unauthorized practice, or abusive dynamics may develop:

Reluctance to seek legal help in the future
Distrust of the entire legal system
Abandonment of valid claims due to fear
Worsening of their psychological condition

Systemic Failings by Insurers: A Case Study in Institutional Betrayal

This case exemplifies the systemic failures within workers' compensation, the female claimant's life was irrevocably altered by institutional negligence and patriarchal power dynamics. Lawyers were complicit in this behaviour and manipulated the situation for their own advantage.

It was revealed through an icare Customer Advocate Review in late 2023 that an insurer, Allianz, had failed to gather additional statements that would have substantiated the claimant's allegations of violence at a second Human Rights Commission conciliation. The first conciliation collapsed when the woman was too unwell to continue.

Despite promising in March 2014 to arrange further statements regarding her AHRC complaint, Allianz never followed through, never informed the claimant of this decision, and never conducted the promised investigation. The second conciliation at the AHRC was repeatedly used against the woman to paint her as vexatious and mentally too unwell to know reality.

Alarmingly, the letters sent to the woman from Allianz were from leadership at the insurer painting a serious risk warning to all insurers in the system.

Below Images: Letter from Allianz to the woman advising they will take further statements with regard to her allegations of breaches of Workers' Compensation and second advisory from Icare Customer Advocate Report indicating no such investigation ever took place.

What makes this case especially heinous is that the alleged perpetrator organisation—her former employer—a relevant individual also held a position of significant power and influence within the workers' compensation system itself. This created an insurmountable imbalance of power, allowing 'power' to evade accountability while the system closed ranks around the organisation.

The "safety net," as revealed years later, was that the employer had never even been sent a formal liability letter by the insurer. The excuse: there was nothing formally in the legislation that said they had to do this. The patriarchal machinery of the system found it easier to gaslight and blame the woman than to confront one of their own and address abuse.

This devastating institutional betrayal remained hidden for nearly a decade, during which the claimant was dismissively told she was "wasting time dredging up issues from the past" and urged to "put these events behind" her—all while being denied the very evidence that could have validated her experience and delivered justice. This is not merely a procedural oversight; it is a brutal example of how the system crushes vulnerable individuals while protecting the powerful.

Protecting Yourself: Red Flags and Resources

If you're currently pursuing a workers compensation claim for psychological injury, be aware of these warning signs of potential lawyer misconduct:

Communications that feel personal rather than professional
Threats, intimidation, or demeaning language
Reluctance to provide documentation of qualifications
Pressure to make decisions against your interests
Isolation from other sources of legal advice

Resources for Help

If you suspect lawyer misconduct:

Contact your state or territory's legal services commissioner or law society
Consider seeking a second legal opinion
Document all communications with your lawyer
For immediate safety concerns related to abusive behavior, contact appropriate domestic violence support services
Remember that you have the right to terminate your lawyer's services

Conclusion

The legal profession operates on a foundation of trust and ethical conduct. When these principles are violated in workers compensation cases involving psychological injuries, the consequences can be devastating. By understanding the signs of misconduct and knowing your rights, you can better protect yourself during these challenging legal processes.

Remember: A good lawyer should make you feel supported and informed, never intimidated or abused. Your psychological wellbeing matters, and no legal process should come at the expense of your mental health.

Shattered looks under the hood on this and other examples of institutional betrayal. The system is punishing and harming people and needs to be halted.