Damages - Disability benefits - Income replacement benefits - deductibility; Policies and insurance contracts - Statutory provisions

Sarah Swan
November 2007

Cummings (Litigation Guardian of) v. Douglas

[2007] O.J. No. 3378

Ontario Court of Appeal

R.J. Sharpe, E.A. Cronk, and S.E. Lang JJ.A.

At trial, a judge held that a deduction for income replacement benefits was to be made from the global award, prior to the application of the deduction for contributory negligence.  The appellate court disagreed, and held that on a plain reading, section 267(1) of the Insurance Act, which provided for the reduction of the “damages awarded to a person” must mean the amount actually awarded, not the quantum of the total damages assessed before the application of contributory negligence.

This case was digested by Sarah Swan of Harper Grey LLP.  If you would like to discuss this case further, please feel free to contact her directly.