Keywords: motor vehicle accident compensation, personal injury damages, Queensland District Court, appellate review, forensic expert evidence
By Honest Grace Legal | Motor Vehicle Injury Law | May 2025
What Happened?
In September 2013, a serious car crash occurred on North Stradbroke Island, Queensland, involving the Lee family in their Toyota Tarago. Among the passengers was Lien-Yang Lee, a 17-year-old who suffered catastrophic spinal injuries and was left partially paralysed (incomplete tetraplegia).
Lee claimed his father was driving at the time of the crash. This mattered because under Queensland law, Lee could only claim motor accident compensation if someone else—not himself—was at fault. His claim was lodged against RACQ Insurance, the compulsory third-party (CTP) insurer.
However, RACQ alleged that Lee himself was actually driving, and that he and his family fabricated the story to fraudulently claim damages. Their strongest piece of evidence? Lee’s blood on the driver’s airbag, suggesting facial contact consistent with being in the driver’s seat during the crash.
This sparked a years-long legal fight involving allegations of deceit, conflicting expert testimony, and sharply opposed interpretations of forensic evidence.
Key Legal Issues
- Was the trial judge wrong to find that Lee was driving?
- Did the Court of Appeal fail to properly re-evaluate the evidence on appeal?
- Was RACQ’s theory about blood on the airbag compelling, or flawed?
- Did the expert evidence support or contradict Lee’s version of events?
- Should the trial court's findings be overturned despite credibility concerns?
What the High Court Decided
The High Court of Australia allowed all three appeals, siding with Lee, his mother, and his father. It found multiple serious errors in how the lower courts handled the case.
Key Findings:
- The Court of Appeal failed to conduct a "real review" of the evidence, particularly when the trial judge relied on flawed assumptions (such as who was wearing seatbelts).
- Lee was found in the rear seat just 90 seconds after the crash, making it improbable he was the driver.
- RACQ couldn’t prove its case that Lee drove or that he lied for financial gain.
- The trial judge’s reliance on DNA evidence ignored technical constraints, such as how blood could have been transferred indirectly (e.g., by his father while assisting him).
Outcome
- Lien-Yang Lee was awarded $3.35 million in damages plus legal fees.
- RACQ’s counterclaim was dismissed.
- Costs were awarded in favour of Lee and his family in all courts.
Why This Case Matters
This High Court decision is a landmark in personal injury and insurance litigation:
- It highlights the importance of expert evidence, especially regarding vehicles, airbags, and forensic blood analysis.
- It underscores that courts must carefully evaluate circumstantial evidence, and not just defer to trial-level findings where credibility is disputed.
- It reinforces that insurers must meet a high burden of proof when alleging fraud.
- It serves as a warning against drawing conclusions from physical evidence alone without proper context and expert interpretation.
Key Takeaways
- Appellate courts must conduct real reviews, not just defer to the trial judge’s views.
- Forensic evidence must be weighed with technical accuracy.
- Injury victims can succeed, even in complex disputes, if their case is well-supported and expertly presented.
- Blood on an airbag isn’t always proof of who was driving.