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Disputes and advice / Compensation claims

Compensation claims against an attorney

VCAT or the Supreme Court can order compensation from an attorney who breaks the rules and causes loss. The person, the family, or the estate after death can make the claim. Victorian law.

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1800 776 529

First advice: $880 including GST

On this page: What the applicant has to show Who can apply VCAT or the Supreme Court Getting the evidence The attorney’s defences After a death: estates Claims outside the Act What it costs The law Enquire

Compensation from an attorney: in short

  • VCAT or the Supreme Court may order an attorney to compensate the principal for loss caused by contravening the Act.
  • The order can be made even if the attorney has been convicted over the same conduct, even if the principal has died, and even if the power was invalid or had been revoked.
  • After a death, compensation goes to the estate.
  • Time limit: if the principal or the attorney has died, the applicant must apply within 6 months after that death (the first death, if both have died). The Court or VCAT may extend time.

What the applicant has to show

  1. The person was an attorney under an enduring power of attorney.
  2. The attorney contravened a provision of the Act about enduring powers. The usual ones: acting dishonestly or without care, an unauthorised conflict transaction, gifts beyond what the Act allows, mixing property, taking payment, or keeping no records.
  3. The contravention caused the loss.

Who can apply for compensation from an attorney

The principal; any attorney under the power; an executor or administrator of the principal’s estate; the Public Advocate; the nearest relative; or anyone VCAT is satisfied has a special interest in the principal’s affairs.

VCAT or the Supreme Court?

Both have the power, and VCAT may refer a compensation application to the Supreme Court. Which one suits a case depends on what you need to recover and from whom. We advise on that in the first advice.

Getting the evidence

VCAT can order the attorney to lodge accounts and other documents, and order them examined or audited. That is often the first step, because the family rarely has the bank statements.

Rows of numbered brass lock boxes

The attorney's defences

  • The power, the principal with capacity, or VCAT authorised the transaction.
  • The gift was within the limits the Act sets.
  • The attorney acted honestly and reasonably and ought fairly to be excused, in whole or part.
  • The attorney acted on VCAT’s or the Court’s advice or directions.

After a death: estates

Executors often find the problem when they collect the bank statements. The claim belongs to the estate and the 6 months runs from the death. If you are an executor or a beneficiary, get advice early. [CHECK: decide on whether to mention the executor’s own duty to pursue the claim.]

Claims outside the Act

A compensation order under the Act is not the only remedy. An attorney ordinarily owes fiduciary duties to the person who appointed them. Where an attorney transfers that person’s money or property to themselves, or to a relative or associate, without authority, a court can set the transaction aside, order the attorney to account for any profit, and treat the attorney as holding the property on trust for the person. A court can follow the property into the hands of someone who received it as a gift. The person cannot recover it from an innocent buyer who paid for it without notice; the claim is then against the attorney personally. A court can also set a transaction aside for undue influence or unconscionable dealing. These claims go to a court, not to VCAT. [CHECK: confirm the last sentence and which court he would use.]

Compensation from an attorney: what it costs

First advice on the papers with a written plan, $880 including GST. We quote the claim itself in stages.

Next step

If the person or the attorney has died, the 6 months is already running. Send us the documents or call 1800 776 529.

Compensation from an attorney: the law

Last reviewed: November 2026. This page is general information about Victorian law as at November 2026. It is not legal advice about your circumstances.

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We reply within one business day.

To send documents, use the Send instructions form. If something is about to happen in the next few days, such as a sale or a hearing, please also call us.

Phone: 1800 776 529
Email: info@enduringpowerofattorney.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199 (by appointment)

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We act for attorneys and for families, but never for both sides of the same dispute. Before we start, we check that we have not acted for anyone else involved. [CHECK: confirm this line]