Lawyers engaging in such conduct may face disciplinary action
South Australia’s attorney-general has shared that legislation seeking to prohibit predatory money-grabbing practices constituting ‘claim farming’ and aiming to protect personal injury victims targeted by such behaviour has passed State Parliament.
The South Australia Statutes Amendment (Claim Farming) Bill 2024 has amended South Australia’s Legal Practitioners Act 1981 and Summary Offences Act 1953.
According to the state attorney-general’s news release, the amendments specifically ban businesses and individuals from:
Under the amendment bill, approaching or contacting an individual to solicit or induce a claim would include doing so in person or through the mail, telephone, email, or other types of electronic communication.
The legislation imposes a maximum penalty of $50,000 on claim farmers. Under the bill, lawyers participating in these predatory practices could also face disciplinary action under the Legal Practitioners Act.
In the news release, the state attorney-general noted that the new offence would not prevent individuals or businesses from reaching out to personal injury victims at their request, for a class action, or through an altruistic approach without the expectation or receipt of a benefit.
The state attorney-general added that the new offence would also not stop victims from commencing compensation claims.
According to the state attorney-general’s news release, the Royal Commission into Institutional Responses to Child Sexual Abuse shed light on the country’s problem of claim farming. Numerous victim-survivors said law firms and businesses cold-called them in search of clients pursuing compensation claims.
In the news release, the state attorney-general noted that claim farmers often used inappropriate or exploitative methods of contact, put significant pressure on victims, and deceptively promised them swift and easy compensation.
“Such contact to an injured person disrespects their autonomy and well-being, and in many cases they may not be ready to speak about the events leading to their injury,” the state attorney-general’s news release said.
