In a medical malpractice jury trial, the court determined whether long‑term disability (LTD) and Canada Pension Plan (CPP) disability benefits should be deducted from damages for past and future income loss.
The plaintiff suffered a stroke after being discharged from hospital and claimed permanent inability to work.
The court held that CPP disability benefits are not deductible from income loss awards.
However, applying the Supreme Court of Canada’s guidance in IBM Canada Limited v. Waterman, the court concluded that the plaintiff’s employer‑funded LTD benefits functioned as indemnity for wage loss and should be deducted from any jury award to avoid double recovery.
The jury was therefore instructed to deduct LTD payments from both past and future wage loss damages.