Product Liability
7. Consumer Compensation
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 15 Aug 2015
- If you have used a defective product and suffered loss or damage then you have three main options for redress under the law. As a consumer you can:
- attempt to privately resolve the matter by mutual agreement with the manufacturer;
- take the manufacturer to court in private litigation; or
- make a complaint to the relevant consumer body in your state or territory.
- The first step for any consumer should be to attempt to resolve the matter privately and without resorting to litigation. Most manufacturers will arrange for the consumer to be readily compensated for the cost of the product and any attendant damage caused. A simple letter to explain the defect accompanied by evidence such as copies of proof of purchase and photographs of the defect or of damage caused by the defect will in most instances be enough to push the manufacturer into taking positive action to resolve the issue.
- However there are some cases where private resolution is not possible. Sometimes a manufacturer will deny liability for the defective product and will refuse to compensate the consumers’ losses. If the product was worth a lot of money or if the defect resulted in serious injury or financial loss it may be worthwhile taking the manufacturer to court in order to seek compensation.
- To commence a claim you will need to fill out a claim form and lodge it with the relevant court. The claim form also needs to be served on (delivered to) the person at fault such as the manufacturer or supplier. The manufacturer will then advise his or her insurer of the claim and commence investigations to determine the accuracy and credibility of the claim.
- The manufacturer will have six months to file a defence against the claim. Otherwise the court may determine the claim to be ‘undefended’ and award damages in the manufacturers’ absence.
- If the claim involves damage to the consumer that includes personal injury the insurer may require the consumer to provide evidence to demonstrate the extent of their injuries. Medical examinations and reports are usually exchanged during the course of the claim.
- It should be noted that the majority of claims settle before reaching trail. It is much more likely that a claim would be settled informally through negotiations with the insurer. For this reason it is extremely important for the consumer to be legally represented to increase the likelihood of making a fair deal. The imbalance of power between an insurer and an ordinary consumer means without legal representation a person may end up making a deal that seems fair in the circumstances but is actually very unfair legally speaking. Once a deal is made a consumer cannot change their minds and take the manufacturer back to court for the same claim.
- Our free Find a Lawyer directory may help you get in touch with an experienced product liability lawyer near you.
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