The plaintiffs were injured in separate motor vehicle accidents and received disability benefits under their respective collective agreements while off work.
They sued the defendants in tort for lost wages.
The defendants argued the disability benefits should be deducted from the damage awards to prevent double recovery.
The Supreme Court of Canada held that disability benefits obtained pursuant to a collective agreement are in the nature of private insurance and should not be deducted from a claim for lost wages, provided there is evidence the employee paid for the benefits (e.g., through trade-offs in collective bargaining or payroll deductions).
The Court also held that damages for lost income should not be reduced by the amount of income tax that would have been payable.
