Lawson and Secretary, Department of Social Services (Social services second review)

This matter concerned an application by the Applicant for a disability support pension, following a lump sum preclusion period. The Applicant sought to have the preclusion period set aside due to special considerations, including his ill health, emotional state, financial circumstances, the receipt of incorrect or insufficient legal advice regarding his compensation claim, and changed circumstances. The decision was made by Senior Member Bill Stefaniak AM RFD of the Administrative Appeals Tribunal.

The Tribunal was required to determine whether any special considerations existed that would justify setting aside the lump sum preclusion period. Specifically, the Tribunal considered whether the Applicant's deteriorated health, which was not sudden but outside his control, constituted a changed circumstance. It also examined the issue of excessive legal costs incurred in settling the compensation claim, and whether the Applicant's emotional state, financial circumstances, and decision-making capacity were relevant factors.

The Tribunal found that while the legislation's fairness was not relevant, the Applicant's deteriorating vascular leg problems, which had worsened since the accident and were outside his control, could be considered a changed circumstance. The Tribunal also determined that a significant portion of the legal costs incurred in settling the compensation claim was excessive, estimating approximately $50,000 of the $56,500.00 charged to be unreasonable. The Applicant's emotional state, including depression exacerbated by his financial situation and chaotic living arrangements, was also considered relevant. While some of the lump sum was spent inappropriately, the Tribunal acknowledged that the Applicant had been without funds for an extended period and had borrowed money, which he had logically repaid. The Tribunal noted that the Applicant was currently facing, and likely to continue to face, financial hardship, and that avenues for further financial support from family were limited.

Ultimately, the Tribunal concluded that the Applicant's circumstances, particularly the excessive legal costs and his deteriorating health, warranted consideration. However, the decision does not specify the final orders made regarding the disability support pension or the preclusion period.