Lawyers and medical insurers are studying the ramifications of last Wednesday’s High Court decision to award compensation to the Queensland parents of a healthy child born after the mother underwent sterilisation. The case brings Australia into “stark contrast” with Britain, where the costs are not recoverable, says Phillips Fox partner Michael Regos.

“How long it remains the law in Australia remains to be seen,” he said, noting that the decision to award the parents $105,249 in compensation for the costs of raising the unwanted child was immediately criticised by Deputy Prime Minister John Anderson.

Until last week’s decision there was widespread uncertainty about whether the costs of raising a healthy child born as the result of medical negligence were recoverable. “The case has considerable impact in the medical negligence arena and in particular in respect to failure to diagnose pregnancy, failed sterilisations and failed terminations,” Mr Regos said.

The appeal by the doctor against the original decision of the Queensland Supreme Court – and later upheld by the state’s Court of Appeal – was upheld by the narrow margin of 4:3.