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In Australia’s legal landscape, disagreements between individuals or businesses can escalate into formal proceedings. When emotions run high, it’s not uncommon for people to wonder whether they can claim compensation for emotional distress as part of a wider civil matter. As more Australians seek clarity on their rights, the intersection between Litigation and Dispute Resolution and psychological harm has become increasingly relevant.

Below, we explore how emotional distress is treated under Australian civil law, when a claim may be possible, and what steps you can take if you believe you’ve suffered significant harm.

What Is Emotional Distress in the Context of Civil Law?

Emotional distress can include psychological suffering such as anxiety, humiliation, fear, grief, post-traumatic stress, or significant mental anguish. Unlike physical injuries, emotional harm is invisible, making it more complex to prove.

In Australian civil disputes, emotional distress claims often arise in cases involving:
  • Negligence
  • Breach of duty of care
  • Defamation
  • Harassment or bullying
  • Breach of contract in sensitive or personal services
  • Invasion of privacy

However, not all disputes allow for emotional distress damages. Courts require clear proof and specific circumstances before awarding compensation.

Can You Claim Emotional Distress in Civil Disputes?

Emotional Distress from NegligenceAustralian courts do allow claims for psychiatric injury under negligence law, but the threshold is high. The claimant must show:
  • A duty of care existed.
  • That duty was breached.
  • The breach caused a recognised psychiatric injury.
 General upset or temporary emotional discomfort is usually not enough. Instead, the injury must be medically diagnosed—commonly referred to as a recognised psychiatric illness.

Emotional Distress in Contract DisputesTraditionally, Australian contract law does not compensate for emotional harm. However, there are limited exceptions, such as:
  • Contracts involving weddings, funerals, or holidays
  • Situations where the nature of the contract is intended to provide enjoyment, comfort, or peace of mind
 If the breach causes distress beyond what would normally be anticipated, compensation may be possible.

Emotional Distress in DefamationDefamation cases regularly involve emotional harm. Australian law allows damages for:
  • Hurt feelings
  • Loss of reputation
  • Ongoing psychological impact
 These damages are recognised and frequently awarded, provided the defamatory statement is proven.

Harassment, Bullying, and DiscriminationUnder both federal and state legislation, emotional distress can be compensable where harassment or discrimination has occurred. Victims may seek damages for psychological harm or distress if they can demonstrate the behaviour caused significant impact.

Emotional Distress in Privacy BreachesAustralian courts have been evolving in their treatment of privacy-related emotional harm. Although Australia does not have a standalone tort of privacy, distress damages may be awarded under related causes of action, especially where personal, sensitive, or intimate information is mishandled.

What Evidence Do You Need?

To succeed in an emotional distress claim, strong evidence is essential. This may include:
  • Medical reports from psychologists or psychiatrists
  • Records of therapy or treatment
  • Statements from family or colleagues describing changes in behaviour
  • Emails, texts, or documents proving the incident
  • Expert testimony

Courts evaluate whether the emotional harm is real, diagnosable, and directly caused by the defendant's conduct.

How Much Compensation Can You Receive?

Compensation varies widely and depends on:
  • The severity of psychological injury
  • Impact on daily life or work
  • Costs of treatment
  • Whether economic loss is involved
  • Any aggravating factors

Some states cap general damages, while others assess emotional harm on a case-by-case basis. Compensation in emotional distress claims tends to be more modest unless a significant psychiatric condition is involved.

Should You Pursue Litigation or Alternative Dispute Resolution?

Many emotional distress disputes settle outside court through:
  • Mediation
  • Conciliation
  • Arbitration

These processes, central to modern Litigation and Dispute Resolution practice, can reduce stress, cost, and time while encouraging a mutually acceptable outcome.

Litigation should generally be considered when negotiation fails or where legal principles must be clarified.

If you believe you’ve suffered emotional distress due to someone else’s actions, you don’t have to navigate the process alone.

Contact New South Lawyers today to understand your rights and explore the best pathway to fair compensation.

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