The appellant insurer appealed a Licence Appeal Tribunal decision which held that Employment Insurance (EI) sickness benefits were not deductible from the respondent's Income Replacement Benefits (IRBs) under the Statutory Accident Benefits Schedule.
The Divisional Court allowed the appeal, finding the adjudicator erred in law by creating an ambiguity where none existed and by distinguishing sickness benefits from other EI benefits.
The Court held that all EI benefits, including sickness benefits, fall within the definition of gross employment income and must be deducted from IRBs at the rate of 70 per cent.
