What is a Statement of Loss and Damage?

What is a Statement of Loss and Damage.      

A Statement of Loss and Damage (SOLD) is one of the key documents in the progression of a personal injury compensation claim.

It is a legal document which sets out the expenses and damages an injured person is claiming.

Once a claim has commenced in the court, the injured person is required to provide/deliver this statement to the insurer or responsible party.

Lawyers describe the Statement of Loss and Damage (SOLD) as the document that outlines the ‘quantum’ (amount) of the injured person’s claim.

Importantly, the SOLD is signed personally by the injured person. This means the injured person is confirming the accuracy of the document, including specific statements about the effect of their injuries upon their life and the activities of their life.

What information does a Statement of Loss and Damage contain?

Rule 548 of the Uniform Civil Procedure Rules 1999 (Qld) applies to Statements of Loss and Damage (SOLD).

Rule 548 states that the Statement of Loss and Damage must identify details of an injured person’s medical expenses, economic loss and other heads of damage which are being claimed.

Typically, a Statement of Loss and Damage will include specific information regarding the following heads of damage: 

• General Damages (Pain and Suffering);
• Past and Future Economic Loss;
• Past and Future Out-of-Pocket Expenses (medical, pharmaceutical and travel expenses);
• Past and Future Care and Assistance (*which cannot be included in all types of claims).

There is considerable work involved in documenting all of this. It is important that you, the injured person, provides detailed information as requested by your lawyer.

The Statement of Loss and Damage must also identify specific documents that are relied upon/used as evidence in the claim, such as:

• medical and hospital records,
• receipts/invoices for medical expenses, and
• taxation documents which are evidence of economic loss.
• medico-legal and other expert reports (if these are left out of the SOLD you may be prevented from relying upon the report in your case).

How does a Statement of Loss and Damage influence my Claim?

The Statement of Loss and Damage is an extremely important document as it outlines the amount of damages or compensation you are claiming.

A correct and detailed Statement of Loss and Damage will ensure your lawyer can obtain the best possible settlement or judgement amount for you.

The information provided in the Statement of Loss and Damage often forms part of negotiations and Mediation Conferences.

If the information provided in the Statement is untrue or inaccurate, this may result in you receiving less money than you may be entitled to.

Even though the SOLD is not filed in the court, it is a document signed by you, the injured person. If a claim progresses to a court hearing, you may be  cross-examined and criticised if it is revealed that the SOLD contains incorrect or inaccurate statements.

How are you, the injured person, involved in the preparation of the SOLD?

The Statement of Loss and Damage is a document that can take a lawyer several hours to prepare as a first draft. It then needs to be considered, amended and given to you, the injured person, to check details. It will then likely need further amendment and a thorough check before it is finalised.

A lawyer will require detailed information from you to ensure all relevant and correct information is included.

If relevant information is left out or is incorrect or untrue, it could result in you receiving less money than you may be entitled to.

It is essential that you review this document carefully before it is finalised.

It is critical that all information in the document be as accurate as possible as mistakes could be damaging to your claim.

The injured person should read the SOLD carefully to ensure the information in it correctly records:

• their injuries,
• the treatment they received,
• their working history prior to and since the accident, and
• the impact their injuries have had on their daily life.

Even though the SOLD is prepared by the lawyer, it is signed by the injured person and is really a statement of the injured person. By signing the SOLD, the injured person is confirming the contents are accurate and correct.