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Landlord Liable for Guest's Fall From Balcony

(UPDATE November 18, 2011The case discussed below was upheld in reasons for judgement released today by the BC Court of Appeal.  These can be accessed here)

Reasons for judgement were released this week by the BC Supreme Court, Campbell River Registry, discussing the duties of landlords to take reasonable steps to make sure buildings they own are safe for tenants and guests.
In today’s case (Jack v. Tekavec) the Defendant owned an apartment in Gold River, BC.  He rented this out to a third party who invited the Plaintiff over.  While visiting the Plaintiff “leaned against a balcony railing which gave way.   (He) plummetted three stories to the ground and was badly injured“. The Plaintiff sued the building owner arguing he was careless for failing to keep the balcony railing in good repair.  Mr. Justice Savage agreed.  In finding the Defendant at fault for the Plaintiff’s injuries the Court stated as follows:

[38]         The evidence establishes that the defendant, as owner and operator of the apartment block, is a landlord pursuant to s. 1 of the RTA.  I find that the defendant is responsible for the repair and maintenance of the deck and owes a duty of care pursuant to s. 6 of the Act to the guests of his tenants including Jack.

[39]         That duty of care includes, in my opinion, a duty to inspect.  The duty to inspect is part of the duty of the landlord to take reasonable care in carrying out the responsibility for the repair of premises under the Act. ..

[44]         In this case the defendant knew of a problem with the balcony railing before the tenancy commenced.  The tenants requested that he repair the balcony railing but he chose not to do so.  The defendant was also aware that the tenant, through Billy, took it upon herself to effect a repair when he did not respond to the requests.  The defendant saw that the work done by the tenant was not done properly.

[45]         The defendant knew that Billy, who did the work, was not skilled.  Although this repair was his responsibility, as the landlord responsible for maintenance, and he knew the work was done wrongly, he chose not to fix it.  He was well aware of the danger of improper work on the balcony railing.

[46]         In my opinion Tekavec owed a duty of care to Mark and to Mark’s guests including Jack.  The standard of care required that he respond to requests of tenants to inspect the tenanted premises regarding the safety problems they raised.  The standard of care also required that, if a tenant did work on a balcony railing that he saw was wrongly done, that he inspect and repair or cause to have repaired the balcony railing himself.

[47]         By choosing inaction he breached the standard of care of a reasonable landlord responsible for such maintenance.  His breach of the standard of care was a direct cause of the accident and Jack’s injuries.

[48]         In the result, I find Tekavec liable to Jack for damages.

The Plaintiff’s damages included an award of $100,000 for non-pecuniary loss.  In arriving at this figure the Court noted the extent and severity of the injuries which were summarized as follows:

[15] Briefly, Jack’s multiple injuries included a broken pelvis, fractured ribs, fractured vertebrae, and internal injuries resulting in hernias.  While in hospital he developed pneumonia requiring a tracheotomy.  His pelvis fracture required a metal plate and screws.  He pelvis fracture healed but he has lost 2” in height.  He now weighs less than 200 lbs and walks with a slight limp.  After six months he returned to work but is now unable to do heavy lifting.  ..

[63]         I have earlier briefly described Jack’s injuries (paras. 13, 14, and 15).  I will not repeat that description here.  His diagnosis was as follows:

(a)        Vertically instable fracture of left side of pelvis involving fractures of the sacrum and symphyseal disruption;

(b)        Stable disruption of the right SI joint; bilateral transverse process fractures of L4 and 5 vertebra; left transverse process fractures of the Li and L2 vertebra;

(c)        Cecal volvulus resulting in right hemicolectomy; facial fractures not requiring intervention;

(d)        Post trauma aspiration pneumonia with respiratory compromise requiring tracheostomy;

(e)        Fracture of left 9th and 10th rib;

(f)         Post operative problems included mild infection of lower part of the abdominal incision; incisional hernia requiring surgery; mild malunion of let hemi pelvis resulting in 1 to 1.5 centimeter shortening of left leg; degenerative changes at the lumbar spine involving L4-5 and 12-S1 levels.

(g)        Pelvic x-rays revealed slight malunion with the left hemi-pelvis being approximately 1 to 1.5 centimeters higher than the right; posterior screw is slightly bent in keeping with this shift in position; hip joints are normal on x-ray; lumbar spine x-rays show degenerative changes at L4-5 level and L5-S1 level. …

[70] In my view, an appropriate award in these circumstances for past and future pain and suffering, loss of amenities and other non-pecuniary losses is $100,000.

Damages Reduced by $35,000 for Failure to Follow Exercise Program


As I’ve recently written, a Plaintiff has a duty to mitigate their losses after being injured otherwise the damages they are entitled to can be reduced.
The most common example of the ‘failure to mitigate’ defence comes up in personal injury claims where defence lawyers argue that a Plaintiff would have recovered more quickly and more completely had they followed through with the suggestions of their medical practitioners.  If evidence supporting such an argument is accepted then a Plaintiff’s award can be reduced.  Reasons for judgement were released today by the BC Supreme Court, Vancouver Registry, demonstrating this defence in action in an ICBC claim.
In today’s case (Cripps v. Overend) the Plaintiff was involved in a 2006 “t-bone” collision.  The Defendant came through a stop sign at high speed and was responsible for the crash.  Fault was admitted and the trial focused on the value of the claim.   The Plaintiff’s injuries totally disabled him for two months and continued to partially disable him by the time of trial.
Madam Justice Stromberg-Stein assessed the Plaintiff’s damages at just over $141,000 then reduced the award by 25% to account for the Plaintiff’s failure to mitigate.  Specifically the Court found the Plaintiff unreasonably failed to follow his physician’s recommendation to undertake an exercise program and had he done so his injuries would have had a better course of recovery.  In reaching this conclusion the Court provided the following reasons:

[96]         There is evidence to satisfy the onus in this case. Mr. Cripps failed in his duty to mitigate his loss by exercising consistently and getting active. Mr. Schneider provided exercises in 2006. He had abandoned these by the time he saw Dr. Adrian in 2007. Dr. Adrian recommended reconditioning in 2007. There is no proof of any impediment to exercise other than Mr. Cripps felt sorry for himself. Dr. Smith highly recommends vigorous exercise to elevate mood.

[97]         The court must reduce damages based on its assessment of the consequences that flow from the failure to mitigate: Tayler v. Loney, 2009 BCSC 742.

[98]         The defendants seek a significant reduction of damages in the range of 25% to 40%: Middleton v. Morcke, 2007 BCSC 804; Latuszek v. Bel-Air Taxi (1992), Limited 2009 BCSC 798.

[99]         The benefits of exercise were proven when Mr. Cripps began to go to the gym in 2009. Once Mr. Cripps started this exercise program he was a different person. Had Mr. Cripps started and maintained an exercise program as his doctors and physiotherapist urged him to do, it is probable his prognosis would be more favorable. The failure to mitigate implicates not only his physical injuries, but any emotional ones, including irritability that may have contributed to his marriage breakdown.

[100]     There will be a reduction of damages of 25% for failure to mitigate.

For more information about the law of mitigation in injury claims you can click here to access my archived posts.

Intersection Crashes and Legal Principles Determining Fault


Reasons for judgment were released today by the BC Supreme Court, Vancouver Registry, summarizing some useful legal principles Judges look at when deciding the issue of fault following intersection crashes.
In today’s case (Luvera v. Benedict) the Plaintiff was injured in a 2005 motor vehicle collision.  He was driving his motorcycle and entered an intersection with the lights “probably in the late amber phase“.  At the same time, the Defendant who was approaching from the opposite direction of travel, “attempted her left turn only when the light turned from green to amber…(and) did not see the oncoming motorcycles“.  The Plaintiff drove into the right rear quarter panel of the Defendant’s vehicle.
Mr. Justice Wong found that both the Plaintiff and the Defendant were equally at fault for the crash.  Before reaching this conclusion the Court set out the following summary of principles of law:

[5]             In the March 2006 issue of the Verdict magazine, a publication of the B.C. Trial Lawyers Association, at page 40, there is a useful discussion of the jurisprudence in the article entitled, “Intersection/Right-of-Way Cases – Making Sense of the Law” authored by Barbara J. Flewelling.  At page 44, the author states:

There is a conflict in the cases about whether or not a left-turning driver must wait until all other vehicles have nearly or actually come to a stop before proceeding to make their turn.  Whereas the British Columbia Court of Appeal in Kokkinis v. Hall, [1996] B.C.J. No. 1560, has indicated that it is not necessary, in Mitchell v. ICBC, [2004] B.C.J. No. 1600, on a Rule 18A application, Mr. Justice Edwards was of the view that the interpretation of the obligations of a left-turning driver as set out in Kokkinis would invite left-turning drivers to assume rather than determine that oncoming through drivers will stop as the light turns yellow and requires through drivers to conduct themselves on the basis left-turning drivers will do so.  Edwards J. felt that due to the fact that many drivers regard an amber light as a signal to accelerate through an intersection, the Kokkinis principle seems to endorse a hazardous assumption of the part of the left-turning drivers.

In the Mitchell case, the left-turning plaintiff turned left on an amber light.  Mr. Justice Edwards found that the dominant through driver entered the intersection on an amber light, the collision occurred when the light was red, and that he was speeding.  Even though the judge said he could infer that the dominant driver would have had time to stop after the light turned yellow or could but was unable to stop due to speed, he still found that the left-turning servient driver had a duty to take account of manifest hazards and, by failing to see or react to the fact the van was approaching fast and not stopping, was negligent.  He apportioned liability equally relying on s. 1(2) of the Negligence Act as he was unable to determine different degrees of fault.

[6]             The author concludes in her summary at page 45 as follows:

Summary

Intersection/right-of-way cases are very fact dependent and it can be very difficult to assess liability with any precision.  However, there are some general principles that can be gleaned from the case law:

Although a driver who enjoys the right of way is entitled to assume that others will obey the law and the rules of the road, this is not absolute and if she is aware or ought to have been aware of the other driver’s disregard of the law and fails to take reasonable care to avoid a collision, she may be found partially or even wholly liable.

In determining if a dominant driver ought to have been aware of another’s disregard of the law, the courts seem to be taking a realistic approach to the exigencies of making rapid decisions in circumstances where a reasonable driver also has to check for cross-traffic and pedestrians.  The courts generally have recognized that at very busy intersections, there are times when the only way a driver can execute a left turn is on an amber light and a dominant driver may be found liable for failing to stop at an amber light.

The onus is on the servient driver to prove that the dominant driver was also negligent in that his or her negligence was a cause of the accident.

There is some conflict in the case law about whether a left-turning driver is obligated to wait until the oncoming traffic is nearly or completely stopped.  Some cases stand for the proposition that it is not necessary while others state that it is prudent to do so and that a left-turning driver who fails to do so will be found partially liable.

A servient left-turning driver has an obligation to take reasonable steps to determine if the dominant driver poses an immediate hazard.  The time this is determined is at the moment just before the turn is commenced.  There is some conflict in the law about whether that requires a servient driver to determine if the dominant driver is speeding and may not stop at the light.

[7]             Like my late colleague, Mr. Justice Edwards, factually I have also concluded that both parties were equally at fault.  Mr. Luvera should have approached the intersection with more caution in order to be able to stop safely.  Ms. Benedict failed to take into account the manifest hazards in this case of approaching motorcycles speeding towards her.

Recognizing the Real Financial Toll of Catastrophic Injuries


(UPDATE: February 3, 2012The below cost of care award was reduced somewhat in reasons for judgement released by the BC Court of Appeal)
Important reasons for judgement were released this week by the BC Supreme Court, Chilliwack Registry, recognizing the real financial toll that catastrophic injuries can cause.
In today’s case (O’Connell v. Yung) the Plaintiff was seriously injured in a 2007 motor vehicle collision.   Her car was struck by a tractor-trailer pinning her vehicle against the Massey Tunnel.  The injuries were extensive and these included traumatic brain injury, a cervical spine fracture, fractures to her right femur, ankle, tibia, fibula, toes, ribs, nose and sternum.  The Plaintiff also sustained injury to her spleen and liver. These left the Plaintiff with chronic pain and serious dysfunction requiring a high level of daily supervision and care.
The Plaintiff initially received such care from a ‘personal care worker’, however she was uncomfortable having strangers tend to her for prolonged periods and eventually her husband of many years took over the role as primary caregiver.  This amounted to full time work.
The biggest issue at trial was the Plaintiff’s accident related future care needs.  The Plaintiff sought compensation for the fair value of hiring individuals to provide her with the care she needed.  The Defendant argued that “any award for the future cost of personal care must be reduced to take into account the fact that Mr. O’Connell is present in the household to provide supervision and guidance and a contingency can be factored in to address the possibility that he will at some point be unable or unwilling to continue to provide this care“.
Madam Justice Fisher rejected this argument and went on to award the Plaintiff $2.25 million dollars to compensate her for her  future care needs.  In doing so the Court provided the following useful reasons:

[124]     I do not accept the defendants’ submission that an award for the cost of future personal care must be reduced to take into account the role Mr. O’Connell plays in providing supervision and guidance to Ms. O’Connell.  Ms. O’Connell is entitled to be compensated for the cost of care that is medically required. As Groves J. held in Cojocaru, the law does not permit the defendants to pass off their responsibility to provide appropriate future care by suggesting that Ms. O’Connell can and should rely on her husband to take care of her.  A husband is not expected to care for his injured wife on a gratuitous basis: see Andrews at p. 243.

[125]     The same principle was expressed in Vana v. Tosta, [1968] S.C.R. 71, where one of the issues involved an award for the cost of future housekeeping services.  The majority of the court stated at p. 75:

It is trite law that a wrongdoer cannot claim the benefit of services donated to the injured party. In the present case it amounts in my judgment to conscripting the mother and mother-in-law to the services of the appellant and his children for the benefit of the tortfeasor and any reduction of the award on this basis is and was an error in principle.

[126]     In McTavish v. MacGillivray, 2000 BCCA 164, the court was also dealing with an award for the loss of housekeeping capacity, both past and future, and interpreting and applying the principles set out in Kroeker v. Jansen.  At para. 43, Huddart J.A. stated:

.. the majority in Kroeker quite clearly decided that a reasonable award for the loss of the capacity to do housework was appropriate whether that loss occurred before or after trial. It was, in my view, equally clear that it mattered not whether replacement services had been or would be hired.

[127]     While Kroeker was restricted to housekeeping services and, as Huddart J.A. noted, the court did not adopt the analogy with future care as a general rule, it is my opinion that the same principle can be applied in the circumstances of this case with respect to personal care services that may or may not be hired in the future.

Diminished Earning Capacity Awards Without Past Wage Loss

(UPDATE February 9, 2012:  The Damages in the below case for Diminished Earning Capacity and Cost of Future Care were reduced somewhat by the BC Court of Appeal on February 9, 2012)

A common misconception is that a person cannot claim for diminished earning capacity (future wage loss) in an ICBC Claim when there has been no past wage loss.  As I’ve previously discussed, this simply is not true.  Reasons for judgement were released last week by the BC Supreme Court, Vancouver Registry, demonstrating this.
In last week’s case (Morlan v. Barrett) the Plaintiff was injured in two separate motor vehicle collisions.  Fault was admitted by the Defendants in both actions.  The Court found that both crashes caused a single indivisible injury (chronic widespread pain eventually diagnosed as fibromyalgia).
The Plaintiff’s injuries and limitations caused her to change employment to a job that was less physically demanding.  Fortunately, her new job paid a better salary and the Plaintiff had no past wage loss from the time of her first crash to the time of trial.  Her injuries, however, were expected to cause ongoing limitations and the Plaintiff claimed damages for diminished future earning capacity.  Mr. Justice Stewart agreed the Plaintiff was entitled to these damages and assessed the loss at $425,000.  In reaching this assessment Mr. Justice Stewart gave the following useful reasons:
[7] The plaintiff found work at the Electrical Industry Training Institution (EITI) in 2008 and is employed there as a Program Coodinator.  The job is far less demanding and the commute is only 20 minutes.  The job is also far less rewarding in terms of job satisfaction.  Having to change jobs was a huge blow and this will be reflected in the non-pecuniary damages I award later.  By happenstance the plaintiff’s salary actually went up when she switched jobs.  For that reason there is no claim for loss of earning capacity to the date of trial.  But there is a claim for loss of opportunity to earn income – including benefits – in the future…

[17]        Pure happenstance resulted in her suffering no loss of income to the date of trial, i.e., she got a less demanding job which happened to pay more than her job at the B.C. Fed.  But a reduction in her capacity to earn income has been made out.  Her having to give up her job at the B.C. Fed demonstrates that the circle of secretarial or administrative positions for which she could, if necessary, compete has been narrowed.  (Exhibit 6, a “Functional Capacity Evaluation” and Exhibit 5, the report of an “Occupational Health Physician” simply confirm the obvious.)  To put it in familiar terms:  she is less marketable as an employee; she is less capable overall from earning income from all types of employment; she has lost the ability to take advantage of all job opportunities which might otherwise have come her way; and she is less valuable to herself as a person capable of earning income in a competitive labour market (Rosvold v. Dunlop, 2001 BCCA 1 at paragraph 10).  The live issue is whether there is a real and substantial possibility that the reduction in her capacity to earn income will in fact result in lost income – including benefits – in the future (Sobolik v. Waters, 2010 BCCA 523, paragraphs 39-43).

[18]        As noted earlier, having considered the whole of the evidence placed before me I rely on the evidence of the plaintiff’s family physician, Dr. Beck, as I peer into my crystal ball and consider the plaintiff’s future.

[19]        The fact that the balance of the medical evidence does not replicate what Dr. Beck said at Exhibit 4 page 6 – that the plaintiff has “plateaued even slightly worsened over the past year” – and indeed the evidence of the rheumatologist, Dr. Shuckett is quite different – is neither here nor there as having considered the whole of it I say as the trier of fact that Dr. Beck was an impressive, thoughtful witness of great experience who offered up her opinion against a background of having dealt with the plaintiff for 25 years and, more particularly, having had close supervision of the plaintiff’s medical condition since January 6, 2007 and the advent of the motor vehicle accidents.  In saying that I have not lost sight of the fact that Dr. Beck has in fact retired.

[20]        Having considered the whole of the evidence together, I say that three real and substantial possibilities have been made out:  that the plaintiff’s condition will improve; that the plaintiff’s condition will remain as it is; and that the plaintiff’s condition will worsen.  In “giv[ing] weight according to their relative likelihood” to these three hypothetical events I find that the possibility of her condition improving barely rises above mere speculation and that the possibility of her remaining the same and the possibility of her condition worsening are both great (Athey v. Leonati, [1996] 3 S.C.R. 458 at paragraph 27).

[21]        I find that there most certainly is a real and substantial possibility that the reduction in the plaintiff’s capacity to earn income will result in lost income – including benefits – in the future.  Beyond the fact that nothing in life is certain and that she may yet find herself on the job market there is the real and substantial possibility that even if she remains in her current job until the end of her working career, her working career will end earlier than it would otherwise have absent the effects on the plaintiff of the defendants’ negligence.  That is so because it is a real and substantial possibility that her fibromyalgia will remain as it is but common experience dictates that as one moves into one’s latter years the ability to work in spite of a condition that drains one’s energy diminishes.  Independently of that, it is a real and substantial possibility that the plaintiff’s fibromyalgia – and with it loss of energy – will worsen.  I make that finding having considered the whole of the evidence including that of the plaintiff as to her recent experience and of all of the doctors and concluded as the trier of fact that I rely most on the evidence of Dr. Beck.

[22]        I take into account factors beyond those that relate to the state of the health of the plaintiff and her ability to work.  The plaintiff has established a real and substantial possibility – not mere speculation – that had she not had to forfeit her job at the B.C. Fed she would have, within a few years of the date of the motor vehicle accidents, taken advantage of an opportunity to perhapsmove up in the hierarchy of the B.C. Fed to the point of becoming a Director and with that received an increase in salary and benefits.  That is the net effect of the evidence of the plaintiff and of Lynda Bueckert.  Moreover, as of January 6, 2007 the plaintiff had to assume that she would retire from the B.C. Fed when she turned 65.  After January 6, 2007 the law changed.  I find that the plaintiff’s love for her job at the B.C. Fed combines with my picture of what she was before January 6, 2007 and results in my accepting her evidence to the effect that it is a real and substantial possibility that absent the defendants’ negligence she would have continued to work at the B.C. Fed even after she had turned 65.  I have considered the positive and negative vagaries of life, i.e., the contingencies.  Having considered the whole of it I award the plaintiff $425,000.

Clarity Provided by BC Court of Appeal on Tax Deductions in ICBC Loss of Income Awards


There has been some uncertainty in the law over the past few years over the amount that is to be deducted by trial judges when awarding past income loss in tort claims arising from BC motor vehicle collisions.  This issue was clarified in reasons for judgement released today by the BC Court of Appeal.
In today’s case (Laxdal v. Robbins) the Plaintiff was injured in a motor vehicle collision and sued for damages.  She was awarded $3,306 for past loss of income.  Section 98 of the Insurance (Vehicle) Act requires past income loss awards to be reduced to “net income loss” after taking income tax into account.
The trial judgement did not reduce the wage loss award finding that “In my view, the authorities support the conclusion that where the gross award is at or below the amount exempt from taxation, there would be no tax payable so that the net past income loss would be the same as the gross past income loss….Accordingly there will be no deduction for income tax as the amount of past wage loss is below the personal exemption”
ICBC disagreed and appealed this finding.  ICBC argued that any past loss of income awards need to be combined with actual income earned during the year of the loss and tax consequences need to be determined using the global figure.  The BC Court of Appeal agreed and provided the following clarity in this contentious area of personal injury law:

[18]         I have concluded that the trial judge was incorrect in interpreting ss. 95 and 98 of the Insurance (Vehicle) Act as not requiring a reduction in her award for past loss of income to reflect the tax consequences when that loss is combined with earned income during the same period. The words of those sections must be read in their grammatical and ordinary sense.

[19]         Having found that the losses all occurred in 2006, the trial judge ought to have combined the respondent’s 2006 income with the past income loss award for the purpose of determining the income she would have earned for income tax purposes “as if she had continued working” (as per Tysoe J.A. at para. 185 of Lines). To achieve this result, the appellant proposed the use of what has been referred to as the “stacking approach”.

[20]         I am satisfied that, where an income loss can be attributed to a particular tax year or years, the language of ss. 95 and 98 of the Insurance (Vehicle) Act requires a resort to the stacking approach. Although Tysoe J.A. explained in the examples he referred to in Lines that “it was the intention of the Legislature to give a discretion to the judge to determine what period or periods are appropriate for the determination of net income loss in all of the circumstances”, once that determination is made, the legislation requires a deduction from the gross income loss to take into account the provisions of the Income Tax Act of British Columbia, the Income Tax Act of Canada and the Employment Insurance Act of Canada for the relevant year or years…

[22]         As Tysoe J.A. observed in Lines at para. 180:

… It does seem somewhat odd for the income loss allocated to a particular year to be reduced according to one set of tax rules (i.e., the tax rules for the preceding year), while the plaintiff’s actual earnings for that year are taxed according to a different set of tax rules (i.e., the tax rules for the year in which the income was earned).

[23]         The application of the stacking approach in accordance with the legislation will result in the combination of the award for past income loss with the other income earned for the same year, but the application of the enumerated legislation from the preceding year to only that portion of the total income for that year represented by the award. While the result is a cumbersome calculation, I see no need to resort to any exceptional construction of the legislation, as discussed by Lamer J., as he then was, in R. v. Paul, [1982] 1 S.C.R. 621 at 662, in order to achieve the legislative intent of ss. 95 and 98 of the Insurance (Vehicle) Act. Section 95(a) of the Insurance (Vehicle) Act refers in each of its subsections to taxes or premiums as the enumerated Acts “read on December 31 of the calendar year before the calendar year in respect of which the net income loss is to be determined”. In my view, this wording accommodates awards for either single or multiple years of income loss by permitting a judge to allocate the loss as discussed at para. 184 of Lines, and to then subject the award for that year or years to the effect of the specified legislation based on their provisions for the preceding year.

[24]         A feature of the present legislation that does not arise in this case is the inability of a person injured in a motor vehicle collision to take advantage of any tax planning, such as a contribution to a Registered Retirement Savings Plan. In Lines Tysoe J.A. concluded at paras. 190-194 that such a notional contribution could not be allowed when calculating net income loss under ss. 95 and 98. While the inability to take advantage of such tax planning will not place the injured person in the same position that he or she would have been in, but for the accident, the application of the stacking approach will come as close to so doing as possible, while at the same time giving effect to the intent of the Legislature.

[25]         In this case, the respondent’s total reported income for the year 2006 was $40,175.00. The respondent paid $6,024.05 for federal and provincial income tax that year, which represented an overpayment of $202.26.

[26]         I conclude that the appropriate means by which to arrive at the respondent’s net past income loss is:

a)       to determine her income from other sources during 2006 ($40,175.00);

b)       add that figure to her income loss after taking into account the sick benefits she received ($3,306.24);

c)       determine the tax that would be payable on $43,481.24, based upon the 2005 income tax rules and regulations by computing the amount in accordance with the provisions of theIncome Tax Act of British Columbia, the Income Tax Act of Canada and the Employment Insurance Act of Canada applicable to the calendar year ending December 31, 2005 and on $40,175.00 based upon the 2006 income tax rules and regulations by computing the amount in accordance with the provisions of the Income Tax Act of British Columbia, the Income Tax Act of Canada and the Employment Insurance Act of Canada;

d)       subtract the difference between the two tax figures determined in c, above;

e)       then deduct d from the income loss award, net of sick benefits that she received.

Filling in the Gaps – Lack of Expert Evidence and Future Wage Loss Awards


Generally when a Plaintiff advances damages for diminished earning capacity (future wage loss) in a personal injury lawsuit expert evidence is called to address the long term prognosis and consequences of a Plaintiff’s injuries.  Interesting reasons for judgement were released today by the BC Supreme Court, Vancouver Registry, making such an award despite the lack of medical opinion evidence addressing the issue.
In today’s case (Helgason v. Bosa) the Plaintiff was involved in a 2006 motor vehicle collision.  Her vehicle was t-boned by the Defendant.  Fault for the crash was admitted.  The trial focused on the value of the Plaintiff’s claim.
In support of her case the Plaintiff attempted to introduce two medico-legal reports written by her GP.  The first report, dated May 11, 2009 stated that “You have asked me to comment with regard to [the plaintiff’s] loss of earning capacity.  I do not feel that [the plaintiff] is less capable overall from earning income from all types of employment and I do not feel she is less marketable or attractive as an employee to potential employers as a result of the motor vehicle accident.”
As time passed the doctor changed her mind and wrote a second report indicating that the Plaintiff’s injuries would cause a diminished earning capacity.  The Defendant argued that the second report did not comply with the Rules of Court and that it should be excluded from evidence.  Mr. Justice Silverman agreed.  This left the Court with only the doctor’s first report providing an opinion of the Plaintiff’s future earning capacity.
The Defendant’s lawyer then argued, given the first report, the Court should not make an award for diminished earning capacity.  Mr. Justice Silverman disagreed and filled in the gaps addressing this issue with factual evidence presented at trial.  The Court went on to award the Plaintiff $45,000 for this loss and in doing so provided the following helpful reasons:

[48]         It does not follow from my ruling that I must conclude that the doctor’s opinion as of May 11, 2009, was still her opinion at trial.  Clearly, it was not.  However, the most significant consequence of my ruling is that there is no expert opinion in evidence with respect to future issues to support the plaintiff’s argument that I should be awarding damages for various of the plaintiff’s future concerns.

[49]         It does not necessarily follow from that, that the plaintiff is unable to mount an argument that there is still a sufficient basis for me to make the findings that she argues are appropriate.  The plaintiff argues that there is still sufficient evidence for me to draw the inferences which she argues I should draw, even without the opinion expressed in the inadmissible report.  It is noteworthy, in that regard, that when the defendants argued for the ruling with respect to admissibility, one prong of its argument was that the non-compliant report was not “necessary” because there was already other evidence with respect to the various future issues.

[50]         I am satisfied that indeed there is other evidence from which various inferences about the future might be drawn.  That other evidence consists of the following:

1.       Comments in the admissible report that do make projections into the future which are consistent with the position that the plaintiff takes:

“I do not think that [the plaintiff] has reached maximum medical improvement and she will continue to improve over the next 18 – 24 months.”

“Her present employment as a yard planner has a potential to exacerbate her symptoms.”

“I am not advising that [the plaintiff] change her current employment, but I will agree that her current employment does exacerbate her symptoms to a moderate degree.”

2.       The plaintiff’s own evidence at trial of her ongoing difficulties.

3.       The doctor’s oral evidence about various visits of the plaintiff since May 11, 2009, and the observations which she made (although her opinion arising from those visits was not admissible)….

[52] I am satisfied from the foregoing that the injuries, and other difficulties caused by the MVA, are ongoing and will continue to be ongoing, and will negatively affect the plaintiff’s capabilities and abilities in the future.

More on the New Rules of Court and Proportionality: Withdrawing Deemed Admissions


As previously discussed, the BC Supreme Court Rules permit parties to a lawsuit to ask the opposing side to make binding admissions through a “Notice to Admit”.  If the opposing side fails to respond to the Notice in the time lines required they are deemed to have made the sought admissions.  Once the admission is made it cannot be withdrawn except by consent of the parties or with the Court’s permission.  Reasons for judgement were released today by the BC Supreme Court, New Westminster Registry, considering the Court’s discretion to withdraw deemed admissions.
In today’s case (Piso v. Thompson) the Plaintiff was involved in a 2003 collision.  She sued for damages alleging longstanding injuries as a result of this crash.  In the course of the lawsuit ICBC’s lawyer served the Plaintiff with a Notice to Admit claiming that the Plaintiff was fully recovered within two years, that there was no claim for past wage loss nor a claim for diminished earning capacity.  The Plaintiff’s lawyer neglected to respond to the Notice in the timelines required resulting in the admissions being inadvertently made.  ICBC then brought an application for summary judgement.
The Plaintiff brought an application asking for permission to withdraw the admissions.  ICBC opposed arguing there would be no prejudice to the Plaintiff if she was faced with these admissions as she could sue her own lawyer in negligence to make up for any damages the unwanted admissions caused.  Master Caldwell rejected this argument and permitted the Plaintiff to withdraw the admissions.  The Court cited the principle of ‘proportionality‘ in reaching judgement.  Master Caldwell provided the following useful reasons:

[20]         Rule 7-7 provides a mechanism to streamline and make more efficient the litigation process. It rewards efficiency and encourages a focus on issues which matter and which are truly in dispute. It provides penalties and disincentives for failure to admit that which should properly be admitted by way of cost sanctions. It certainly provides for much more extreme outcomes in appropriate circumstances but it also provides for judicial discretion in excusing or relieving from such extreme outcomes in appropriate circumstances.

[21]         In my respectful view Rule 7-7 does not, nor was it intended to, create a trap or add an inescapable obstacle to ensnare or trip up sloppy or inattentive counsel to the detriment of the parties to the litigation.

[22]         The current Rule 1-3(a) continues the long-standing object of the rules:

The object of these Supreme Court Civil Rules is to secure the just, speedy and inexpensive determination of every proceeding on its merits.

[23]         There is no question in my mind that the failure in this case was a sloppy, inadvertent and possibly even negligent failure on the part of former counsel for the plaintiff. I am satisfied that the plaintiff himself cannot be faulted in any way for the oversight; he had neither actual notice of the document in question from his lawyer nor an opportunity to provide a reasoned and considered response.

[24]         The refusal of leave to withdraw these admissions will deny the plaintiff his opportunity to have his claim heard on the merits. The argument that the plaintiff can have his relief by way of a professional negligence claim against his former counsel fails to recognize the further delay and expense of such a claim. In the context of proportionality such an option does not seem appropriate from a financial or court resource prospective.

[25]         In my view this is precisely the type of situation which warrants an order allowing the withdrawal of a deemed admission while providing for the other party in costs and other accommodations.

[26]         The plaintiff is granted leave to withdraw the admissions.

Over 36,000 Reasons for Learning Motorists to Drive With A Qualified Accompanying Passenger


Reasons for judgement were released today demonstrating some of the real world consequences drivers with a learner’s licence could face if they are found to be in breach of their policy of insurance.
In today’s case (King v. ICBC) the Plaintiff was involved in a 2007 BC motor vehicle collision.  4 vehicles were involved in the crash.  The Plaintiff was insured with ICBC and they paid out over $36,000 with respect to the claims made from the crash.  At the time of the collision the Plaintiff had a Class 5L learners licence and was operating his vehicle “without a qualified accompanying passenger“.   As a result he was found in breach of his insurance.   He was found to be the at fault motorist and ICBC asked that he pay them back the over $36,000.
The Plaintiff sued ICBC arguing that he was not at fault and that he was not in breach of his insurance.  ICBC counterclaimed for $36,613.33.  Prior to trial ICBC made an offer to settle their claim against the Plaintiff for $33,000.  The Plaintiff declined this offer and proceeded to trial.  Ultimately Mr. Justice Pearlman found the plaintiff was the at fault motorist and that he was in breach of his policy of insurance.  He ordered that he pay back ICBC the funds they paid out with respect to the collision claims.
The Court went further and ordered that the Plaintiff pay ICBC double costs for failing to accept their pre trial offer.  In reaching this judgement Mr. Justice Pearlman provided the following reasons:

[30]         The plaintiff’s claim failed as a result of the court finding that neither his testimony, nor that of his witness, Ms. Gromova, was credible.  The court found that the plaintiff had wilfully made a false statement respecting Ms. Gromova’s presence in the vehicle at the time of the accident.

[31]          The over-riding principle is whether, if the Offer to Settle had been accepted, there would have been significant, or any savings in litigation costs to the parties or to the court: LeFler v. Anderson, 2008 BCSC 1563, at para. 18. Here, acceptance of the offer would have spared both parties the significant costs of a four day trial where the amount in dispute was, exclusive of court order interest, less than forty thousand dollars.

[32]         Taking all these factors into consideration, I conclude that an award of double costs should be made in this case, and is consistent with the objective of deterring unreasonable conduct in litigation.  I find that the plaintiff was entitled to a reasonable time to consider the defendant’s Offer to Settle, following its delivery on September 24, 2010.  Taking into account the disclosure of the will say statements of the defendant’s witnesses on September 29, and allowing Mr. King a reasonable time to consider his position, and the defendant’s Offer following the delivery of the will say statements, I find that the defendant is entitled to an award of double costs  commencing October 7, 2010.

RESULT

[33]         The defendant will recover its costs and disbursements of this action from its commencement until October 7, 2010.  Those costs will be at Scale B.

[34]         The defendant is entitled double costs commencing October 7, 2010 and to disbursements incurred after October 7, 2010.  Disbursements will be allowed in the amount incurred, rather than at a double rate.

Driver Liable to Passenger Ejected from Box of Truck

(Update November 2, 2011 – Note the below case was modified by the BC Court of Appeal with a finding that the motorist should be 100% at fault due to the absence of any evidence of contributory negligence)
Reasons for judgement were released today by the BC Supreme Court, Vernon Registry, discussing the issue of fault when a passenger riding in the box of a truck is ejected and injured.
In today’s case (Vedan v. Stevens) the Defendant driver allowed 4 children sit in the box of his pick-up truck.  The 12 year old Plaintiff was one of these children.  In the course of the trip the defendant “first became aware of a problem when he heard pounding on the cab of his truck…he stopped the truck and determined that one of the children, the plaintiff, was no longer in the truck box. He looked back and could see the plaintiff lying in the middle of the road“.
Madam Justice Beames determined that the Plaintiff rose from a seated position in the course of the trip and then was ejected.  The court held that both the Plaintiff and the Defendant were at fault with the Defendant shouldering most of the blame.  Madam Justice Beames provided the following reasons:
[31] There is no question that the defendant was responsible for allowing the plaintiff and the other children to ride in the box of his truck. He did not have to allow the plaintiff to get into the box of the truck, and he had enough seats and seat belts, I find, inside the truck to accommodate all of his passengers, including the plaintiff…

[34] I find the defendant owed a duty of care to the plaintiff and that he breached that duty and failed to exercise a standard of care of a reasonable person in the same circumstances. That negligence was clearly causally connected to what happened to the plaintiff. The plaintiff would not have been injured had the defendant not allowed him to ride unrestrained in the box of his truck. It was foreseeable, in my view, that what occurred would or could occur.

[35] I turn now to the issue of contributory negligence on the part of the plaintiff…

[44] In the circumstances of this case, I would not find that the plaintiff was contributorily negligent simply by riding in the back, or the box, of the truck. He was allowed to be there by an elder from the Sun Dance ceremony which featured community, trust and respect for elders. However, I do find that the plaintiff was, by getting up from a seated position on the floor of the box in a moving truck, negligent in fact.

[45] Consequently, the defendant has proved contributory negligence…

[53] In all of the circumstances of this case, I apportion fault between them as follows: the plaintiff, 25 percent; the defendant, 75 percent.