In a motor vehicle action brought by a bankrupt plaintiff, the defendant moved for a declaration that a claim for loss of future income constituted property that vested in the trustee in bankruptcy under the Bankruptcy and Insolvency Act.
The court considered conflicting authorities regarding whether damages for future income loss should be characterized as property or as income for the purposes of the Act.
Adopting the reasoning in Re Conforti, the court held that damages for future income loss are properly treated as income rather than property.
Accordingly, the claim forms part of the bankrupt’s total income under s. 68(2) of the Act rather than vesting in the trustee as property.
