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Had a really bad one about 4 years ago, was a hole that was well known by the authority, had been repaired 3 times in 2 years, so they knew it was a recurring issue (none of the repairs were real, only temp make do till the end of the month quality of repair). Hole was severe enough to break the fork most of the way through, loss of control, mangled knee's and legs, huge time off work etc.
Authority got off with it as essentially they had 'attended to the road in excess of the number of periodic inspections required', therefore there couldn't have been a defect as bad as that, because they'd already fixed it numerous times. Local councils are able to make up their own inspection routines for smaller urban roads as they see fit.
Think there was somewhere in one of the legal responses they made a statement 'the parties transport was unsuitable for the road in question'. I.e. I was riding a bicycle and not driving a rangerover. Bike was a new bike of quality with no issues.
One day might take that one to the press "council states roads too shit for bikes, protect yourself by buying an SUV instead" is probably how the media would interpret it.
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BrickMan
Had you/do you know if anyone else had reported it prior to your crash?
That seems to be the key thing up here and even then it’s meant to be pretty hard to get a pay out.