'Compensation neurosis' revisited: outcome studies of the effects of litigation

Although the term 'compensation neurosis' has been frequently used to describe personal injury litigants, its clinical validity--and the assumptions about individuals described by this label--have not been critically examined. This article reviews the concept of 'compensation neurosis' and follow-up studies of claimants for compensation following the finalisation of their legal proceedings. A follow-up study of 760 litigants found that, of the 264 subjects who were not working at the time of conclusion of litigation and who could be traced, 198 (75%) were not working after an average of 23 months following the finalization of their cases.