Slater and Gordon Lawyers is representing Werribee resident, Michelle Buckley, who was allegedly wrongly identified as deceased after police and a local hospital allegedly confused her with another woman.
Werribee Police discovered the body of a homeless woman who is understood to have had a Werribee Mercy Hospital discharge summary on her bearing our client's name and date of birth.
On the basis of that document, police treated the body as that of Ms Buckley and incorrectly notified her family that she had died.
When Ms Buckley later learned that she had been declared dead, she suffered significant psychological trauma and is receiving treatment.
Slater and Gordon lawyer, Kieren McKenzie, said the firm is investigating potential breaches of the client's privacy and a claim for damages.
"Our client was wrongly declared dead on the basis of a single piece of paperwork, and the impact on her and her family has been devastating."
He said the matter raised serious questions about how public institutions confirm a person's identity and how sensitive personal information is protected.
"Basic identity checks exist for a reason. When they fail, the consequences are not just administrative, they can be deeply traumatic for the person, their family and friends.
"Our client is now processing the shock of being told her own death was reported to her loved ones, on top of the distress of knowing her personal details were used on another person's medical record," Mr McKenzie said.
Werribee Mercy Hospital allegedly misused Ms Buckley's personal details on the deceased woman's medical record, even though Ms Buckley has never attended the hospital.
Her details are also understood to have been used to bill Medicare.
Both Werribee Police and Werribee Mercy Hospital have provided Ms Buckley with written apologies. She also met with the Medical Director of Werribee Hospital, and a complaint has been lodged with the Health Complaints Commissioner.
Mr McKenzie said the matter raises serious questions on how private data and medical records are handled, and the real human cost when potential breaches of privacy occur.
"The shock and trauma of your family being told you have died and then having to come back from that is extraordinary.
"It is the kind of experience that would leave most people, and their loved ones, with lasting psychological scars.
"No apology can undo the harm of being wrongly told that the unthinkable has happened to you or someone you love. People rightly expect that their personal information will be handled accurately and carefully.
"When serious errors like this occur, there has to be real transparency and institutions need to be held to account to make sure it does not happen again.
"We are currently investigating the matter as a breach of Ms Buckley's privacy, and exploring a potential claim for damages," Mr McKenzie said.
The firm encourages anyone who believes they have been affected by similar identification errors or misuse of their personal information by public institutions to seek advice about their rights.