Richard J.T. Shaheen

Following a jury verdict awarding damages for injuries arising from a motor vehicle accident, the defendant insurer moved for declarations that the plaintiff must hold in trust and pay over certain future statutory accident benefits and collateral benefits pursuant to s. 267.8 of the Insurance Act.

The insurer argued that the jury’s award for future care costs overlapped with potential medical and rehabilitation benefits, raising concerns of double recovery.

The court held that deductions or trust obligations to prevent double recovery require clear proof that the plaintiff’s entitlement to collateral benefits is certain and that the tort award compensates the same losses.

Given uncertainty regarding the plaintiff’s future entitlement to statutory accident benefits and the extent to which the jury’s lump-sum award corresponded to benefits available under the accident benefits scheme, the evidentiary threshold was not met.

The requested declarations and related relief were therefore refused.

Following a jury trial for a motor vehicle accident where the plaintiff was awarded substantial damages, the defendant insurer brought a motion for a ruling that the plaintiff's claims did not meet the statutory threshold under the Insurance Act.

The court found that the plaintiff's chronic low back pain was caused by the accident and constituted a permanent serious impairment of an important physical function.

The court dismissed the defendant's motion, concluding that the plaintiff met the statutory threshold for non-pecuniary loss and future care costs.