In the recent case of Mazzucco et al. v. Herer et al, 2015 ONSC 7083, the Court analyzed the law in respect of deductions and set offs between disability benefits such as Canada Pension Plan (CPP) benefits and Long Term Disability (LTD) benefits and Income Loss damages where a disabled person received both.
This case involved an injury victim seeking damages arising from medical malpractice. The Court decided on how deductions are applied when the injury victim receives both CPP and LTD benefits from past and future income loss.
In this case, Mr. Justice Skarica stated that the following were existing legal principles in Ontario:
Negligence damages are measured by actual loss. While there are some exceptions, “double recovery” is not awarded. One exception to the prohibition on double recovery is called the “private insurance” exception. If an injured person received insurance benefits as part of their work wage package, the disability benefits should not be deducted from awards for income loss.
Otherwise, an injured person should be compensated for actual loss so that wages earned during a period of disability are generally “deductible”.
The Court generally will assess whether the benefit received by the injury victim is for “income loss”. In this case, the injury victim was receiving long term disability benefits through a school board funded by the provincial government. If the injury victim would receive both an income loss damage and disability benefits, that would constitute a double recovery which means the injury victim could end up receiving more income injured and not working than not injured and working.
The law respecting the various damages injury victims can receive is complex and changes with time. If you have been injured in an accident and need help, we are experienced injury, disability and accident lawyers who can assist you.
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