The original proceedings were brought by Ms Soulos against the Secretary, Department of Communities and Justice in the District Court of New South Wales, alleging negligence arising from psychiatric injury she suffered after viewing The Department, an SBS documentary which included discussion of the death of a young person for whom she had previously been the responsible caseworker. The primary judge found that the risk of psychiatric injury was reasonably foreseeable and that DCJ had breached its duty of care by failing to take appropriate precautions, awarding Ms Soulos $1,389,457.74 in damages.
On appeal, the Department challenged the primary judge’s finding that the risk of psychiatric injury to Ms Soulos was reasonably foreseeable.
The NSW Court of Appeal has now upheld the trial judge’s decision in Secretary, Department of Communities and Justice v Soulos [2026] NSWCA 185, dismissing DCJ’s appeal with costs.
The case provides an important example of how Work Injury Damages claims involving psychological or psychiatric injury can arise where an employer fails to protect a worker from a reasonably foreseeable risk of harm.
What happened in the workplace psychological injury claim?
Luiza Soulos worked as a caseworker for the NSW Department of Communities and Justice (DCJ).
In 2017, during the course of her employment, Ms Soulos became responsible for a vulnerable 14-year-old boy (YP). She helped him with everyday needs, appointments and other aspects of his care. She also became aware that he had engaged in self-harming behaviour.
The young person died from an accidental drug overdose in May 2019.
Ms Soulos was upset by his death and DCJ arranged and paid for five psychology sessions over approximately six months. She later returned to her full duties.
More than two years later, DCJ encouraged employees, including Luiza, to watch an SBS documentary, The Department, about its child protection work.
How did the documentary cause a psychiatric injury?
Ms Soulos watched the documentary the night that it aired on 10 October 2021. She believed that it would highlight the great work that she and her colleagues did. The documentary included approximately two minutes of footage from a serious case review panel discussing YP’s case. She had not been warned by her employer that her former client’s case would be discussed.
Although neither Ms Soulos nor the young person was named, the documentary included distinctive information from YP’s journal which Ms Soulos recognised, enabling her to identify him as the subject of the panel’s discussion.
The panel referred to “missed opportunities”, a failure to listen to the young person and that “we really failed this little boy”. As the caseworker who had been responsible for YP, Ms Soulos perceived these comments as criticism of her management of his case and as attributing to her some blame for his death.
She suffered a psychiatric injury after watching the documentary. She attended work the following day but then never returned after that day and became wholly incapacitated for work.
When is psychological injury reasonably foreseeable?
The Court considered two important questions.
First, was it reasonably foreseeable that Ms Soulos might recognise that the documentary was discussing her former client?
The Court found that it was. She recognised distinctive words from his journal, and other DCJ employees were also able to identify the case.
Second, was it reasonably foreseeable that she might interpret the discussion as blaming her?
Again, the Court said yes.
Although the panel may not have intended to blame individual caseworkers, the Court found there was a reasonably foreseeable risk that comments including “we never listened” and “we really failed this little boy” could be understood as criticism of the people responsible for his care.
Can you make a Work Injury Damages claim for psychological injury?
A psychological or psychiatric injury can potentially form the basis of a Work Injury Damages claim in NSW where the legal requirements for such a claim are satisfied.
Importantly, Work Injury Damages are different from ordinary workers compensation benefits. A Work Injury Damages claim involves establishing that an employer’s negligence caused the worker’s injury.
Whether you can make a claim will depend on your individual circumstances, including how the injury occurred, the extent of the injury and whether the applicable Work Injury Damages requirements are met.
Speak to a Personal Injury lawyer
At The Law Office of Conrad Curry, we assist injured workers with Work Injury Damages claims, including claims involving psychological and psychiatric injuries.
If you believe your employer’s negligence has caused or contributed to your injury, our team can assess your circumstances and advise you about your options.
DISCLAIMER
This article reflects the current law at the time of publication. Please note that cases may have been the subject to appeal or subsequent judicial consideration since the date of posting. The decisions referred to are summarised for general understanding only. It is intended for informational purposes only and does not constitute legal advice. For specific legal guidance in relation to your situation, please consult with a qualified legal professional.