If an accident results in death or serious injury with consequent high compensation costs, section 50 action would be warranted (provided it is likely to be successful).
However, where the nature of injuries is less substantial and costs are quite small, third party proceedings should generally not be pursued (bearing in mind that costs associated with rehabilitation cannot be taken into account).
While these two scenarios are quite distinct and represent the extreme, there will be cases where the likely cost of a claim is difficult to establish.
Things such as permanent impairment, which may not become apparent until well into the claim, can be quite costly. However, from the outset it may not be clear that a permanent impairment will result from an injury as simple say, as a broken arm.
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As a general rule, if the actual or potential cost of a claim is greater than $5,000, section 50 action should be pursued. |