Are Future CPP Disability Benefits Deducted from Damage Awards?

Our associate Sydney Logan presented at the Atlantic Provinces Trial Lawyers Association (APTLA) Auto Accident Advocacy Conference on November 23, 2018. Her presentation topic was the recent Nova Scotia case of Holland v Sparks, 2018 NSSC 136 (link to case on Canlii: http://canlii.ca/t/hsm13).

 

After her car accident, Ms. Holland began receiving CPP disability benefits as a result of the injuries she suffered in that car accident.  At Trial Ms. Holland asked the Court to order that Mr. Sparks’ insurance company pay her compensation for income loss and loss of earning capacity after the Trial. The insurance company agreed that it should pay that compensation but argued that section 113A of the Insurance Act allowed them to deduct Ms. Holland’s CPP disability income from the money they had to pay her.  

 

Justice Moir decided that section 113A does not allow the insurance company to deduct from compensation for income loss and loss of earning capacity, CPP disability benefits received by, or available to Ms. Holland after the Trial. CPP disability benefits before the Trial were properly deducted by the insurance company.

 

Justice Moir’s decision has since been appealed. The outcome of this appeal will have a significant impact on personal injury damage awards in Nova Scotia.

 

If you have any questions about the implications of this case, or if you have any questions about car accidents or injury law in general, please call Lenehan Musgrave to schedule a free consultation 902 466 2200.