{"id":5196,"date":"2017-09-20T17:28:27","date_gmt":"2017-09-20T21:28:27","guid":{"rendered":"https:\/\/www.millerthomson.com\/court-appeal-pjideductiblecosts-changes-retroactive-sabs-fully-deductible-punitive-damages-not-appropriate\/"},"modified":"2024-09-16T11:05:01","modified_gmt":"2024-09-16T15:05:01","slug":"court-appeal-pjideductiblecosts-changes-retroactive-sabs-fully-deductible-punitive-damages-not-appropriate","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/insurance\/court-appeal-pjideductiblecosts-changes-retroactive-sabs-fully-deductible-punitive-damages-not-appropriate\/","title":{"rendered":"Court of Appeal: PJI\/Deductible\/Costs Changes are Retroactive, SABS fully deductible and Punitive Damages not Appropriate"},"content":{"rendered":"

On September 19th<\/sup>, 2017, the Ontario Court of Appeal released it\u2019s much anticipated decision on whether or not changes to how pre-judgment interest is calculated would be a retroactive change or not.\u00a0 The Court also adjudicated upon a number of other items that are extremely important to the litigation of personal injury claims.<\/p>\n

On the issue of pre-judgment interest, the Court decided that the changes had retrospective application.\u00a0 The Court held that pre-judgment interest only \u201cvests\u201d with a litigant upon obtaining a damage award, and is subject to judicial discretion \u2013 both principles in accordance with the Courts of Justice Act<\/em>.\u00a0\u00a0 There is no entitlement to pre-judgment interest until a trial judge determines it.\u00a0 Thus, a litigant is bound by the calculation methodology that is in effect at the time the right is vested \u2013 the time of the judgment \u2013 and not the date of the accident. \u00a0Thus, the new method applies to all cases, regardless of the date of loss.<\/p>\n

The Court determined that the changes to the statutory deductible for non-pecuniary general damages also had retrospective application.\u00a0 In the absence of a transitional provision, the drafters of the legislations were presumed to know about section 59 of the Legislation Act<\/em> which holds that absent a transitional provision, the current version of legislation applies.\u00a0 Thus, the deductible at the time of the accident would not be applicable.\u00a0 Instead, the new, inflation adjusted deductible applies to all cases.<\/p>\n

Similarly, the Court determined that the changes to calculating costs \u2013 now taking costs to be determined on the \u201cnet\u201d amount for non-pecuniary general damages (ie. after subtracting the applicable deductible) \u2013 also had retrospective application. \u00a0Costs are to be calculated after the statutory deductible is applied.<\/p>\n

For the above changes, the Court also referred to the intention of the underlying legislation \u2013 to reduce the cost of insurance in the short term as stated by the Legislature.\u00a0\u00a0\u00a0 That could only be achieved if the changes were retrospective. \u00a0Otherwise, it would take years for the changes to filter through the system, with no immediate cost savings.<\/p>\n

The Court also adjudicated upon the issue of the deductibility of income replacement benefits and housekeeping benefits (past and future) from a jury award.\u00a0 The plaintiff had settled the accident benefits claim for a lump sum.\u00a0 The release included wording for a bad faith claim, but the settlement disclosure notice had no reference to any settlement amounts for bad faith.\u00a0 The Court held that this fact along with the wording of the Insurance Act<\/em> did not mean that a tort defendant had the onus to delineate the past credit and future credit, in order to obtain the credit for the full income replacement benefits and housekeeping benefits settled upon.<\/p>\n

Next, the Court held that since the defendant tortfeasor had been found guilty of impaired driving, the trial judge could not be faulted for not putting the issue of punitive damages to the jury.\u00a0 The tortfeasor had already been punished for impaired driving.<\/p>\n

Finally, in analyzing the appropriateness of costs, the court made these comments about soft-tissue\/chronic pain cases:<\/p>\n

[154]\u00a0\u00a0\u00a0The trial judge\u2019s assessment of costs, in any event, at approximately $409,000 on a judgment of $22,136.60, (or $34,000, as the trial judge found) is out of all proportion and cannot stand. This was a chronic pain case. These sorts of cases are never a sure thing from the plaintiff\u2019s perspective. The defence will, as here, put the plaintiff to the strict proof of his case. There was nothing \u201cwrong\u201d with the defence expert giving evidence that he found signs suggestive of malingering in the plaintiff\u2019s test scores.<\/em><\/p>\n

\u00a0<\/em>[155]\u00a0\u00a0\u00a0A defendant is not expected to sit back and simply take a plaintiff\u2019s evidence at face value. This plaintiff had, between the time of the accident and the time of trial, managed to earn a black belt in martial arts. Given that fact, it is not surprising that the defence argued that the plaintiff was not as disabled as the plaintiff had suggested in his evidence, nor was it inappropriate for the defence to lead psychiatric evidence to suggest that the plaintiff was a \u201cmalingerer\u201d. This defence evidence did not waste court time, as the plaintiff argues. Indeed, it is apparent from the verdict that the jury preferred and accepted the defence version of the case.<\/em><\/p>\n

Given the comments of the Court of Appeal, and the number of areas touched on, this case is a \u201cmust-read\u201d for all involved in personal injury litigation.\u00a0\u00a0 The case can be found at: 2017 ONCA 717 (CanLII)<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

On September 19th, 2017, the Ontario Court of Appeal released it\u2019s much anticipated decision on whether or not changes to how pre-judgment interest is calculated would be a retroactive change or not.\u00a0 The Court also adjudicated upon a number of other items that are extremely important to the litigation of personal injury claims. On the […]<\/p>\n","protected":false},"author":1,"featured_media":14367,"parent":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[525],"insight-format":[418],"class_list":["post-5196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance"],"acf":[],"yoast_head":"\nCourt of Appeal: PJI\/Deductible\/Costs Changes are Retroactive, SABS fully deductible and Punitive Damages not Appropriate | Miller Thomson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.millerthomson.com\/en\/insights\/insurance\/court-appeal-pjideductiblecosts-changes-retroactive-sabs-fully-deductible-punitive-damages-not-appropriate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Court of Appeal: PJI\/Deductible\/Costs Changes are Retroactive, SABS fully deductible and Punitive Damages not Appropriate | Miller Thomson\" \/>\n<meta property=\"og:description\" content=\"On September 19th, 2017, the Ontario Court of Appeal released it\u2019s much anticipated decision on whether or not changes to how pre-judgment interest is calculated would be a retroactive change or not.\u00a0 The Court also adjudicated upon a number of other items that are extremely important to the litigation of personal injury claims. On the […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.millerthomson.com\/en\/insights\/insurance\/court-appeal-pjideductiblecosts-changes-retroactive-sabs-fully-deductible-punitive-damages-not-appropriate\/\" \/>\n<meta property=\"og:site_name\" content=\"Miller Thomson\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MillerThomsonLaw\/\" \/>\n<meta property=\"article:published_time\" content=\"2017-09-20T21:28:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-16T15:05:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.millerthomson.com\/wp-content\/uploads\/2024\/10\/Insights_Insurance_Post-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1776\" \/>\n\t<meta property=\"og:image:height\" content=\"994\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta 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