The court determined the appropriate interest payable on unpaid Income Replacement Benefits (IRBs) following a jury verdict in favor of the plaintiff.
The plaintiff sought interest under s. 46(2) of the Statutory Accident Benefits Schedule (SABS) (2% compounded monthly), while the defendant argued for pre-judgment interest under the Courts of Justice Act (CJA) (4.5% simple annual).
The court found that the claim for SABS interest was implicitly pleaded or, in the alternative, an amendment to the Statement of Claim would be permitted.
The court further ruled that SABS interest would apply from March 30, 2006, recognizing an initial period (February 20, 2004, to March 15, 2006) where the plaintiff's own conduct (misleading disability certificate) justified the insurer's non-payment, during which CJA interest would apply.