The family of a man who died in a car crash has reached a $600,000 settlement with an insurance company, which has also been ordered to pay damages for "nervous shock".
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The widow and three children of the late Constantine Kartsonas took legal action against AII Limited, which trades as GIO, in November last year. The father was a passenger in the vehicle at the time of his death.
Due to the youngest child being aged under 18 years old, the case was brought to the ACT Supreme Court to decide whether to approve the claims.
The first claim for damages due to nervous shock was launched by Jay Kartsonas and Nik Kartsonas.
Both were under 18 when the claim first started. The younger child remains underage.
Nervous shock is a legal term used to describe a psychiatric injury inflicted on a person by the intentional or negligent acts or omissions of someone else.
The child, Nik Kartsonas, was awarded $5000, plus almost $3000 for fund management and disbursements.
In a judgement published on Wednesday, Chief Justice Lucy McCallum said while the sum "might seem minimal", confidential advice from lawyers proved it was in the "best interests".
The court also considered a claim for compensation to relatives by Mr Kartsonas' family.
Chief Justice McCallum said there was a "substantial sum" proposed to be paid to the widow, Erin Michelle Kartsonas.
The judge ultimately approved a settlement of $600,000, plus fund management costs.
The insurance company will keep about $18,000 previously advanced to the family to cover funeral expenses.
"There is an apportionment of the sum which provides for a substantial portion to go to the mother and then increasing sums to each of the three young persons (children of the deceased) according to their age, reflecting their likely future needs," Chief Justice McCallum said.
Most of the money is to be paid into the trust account of Blumers Personal Injury Lawyers.
In the judgement, the Chief Justice said while applications for settlements involving children were "of varying degrees of helpfulness", the advice of the family's barrister was "at the 'extremely helpful' end of that scale".
"He has provided careful detail for the court which has made it easy for the court to come to a view as to the reasonableness of the settlement," she said.
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"[It] is always a difficult and concerning task when the court is asked to make a decision that will affect the future of a young person.
"I am satisfied that, having regard to the overall sum to be paid to all of the plaintiffs, the portion payable to Nik Kartsonas is reasonable and that it is in his best interests."
GIO is also required to pay the family's legal costs.
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