Insurance Law – Page 2

Cases Considered: Morrow v. Insurance Bureau of Canada, 2008 ABCA 248

PDF Version: Another stay of judgment denied in the challenge to Alberta’s cap on damages for soft tissue injuries

The latest judgment in the constitutional challenge to Alberta’s $4,000 cap on non-pecuniary damages for soft tissue injuries incurred in motor vehicle accidents was handed down on June 27, 2008 by Madam Justice Patricia Rowbotham of the Alberta Court of Appeal. State Farm Insurance Company, the insurer of the defendant in the personal injury action, had applied for a stay of the February 8, 2008 judgment of Associate Chief Justice Neil Wittmann. He had declared the Minor Injury Regulation, Alta. Reg. 124/2004 (MIR) unconstitutional, thus ending the $4,000 cap. See Morrow v. Zhang, 2008 ABQB 98 and the previous post on this judgment by Jennifer Koshan, “Not on Their Backs: Cap on Damages for Soft Tissue Injuries Struck Down; Court Denies Stay of Remedy Pending Appeal.” Justice Rowbotham denied State Farm’s application.

By: Jennifer Koshan

PDF Version: Not on Their Backs: Cap on Damages for Soft Tissue Injuries Struck Down; Court Denies Stay of Remedy Pending Appeal

Cases Commented On: Morrow v Zhang, 2008 ABQB 125, Morrow v Zhang and Pedersen v Thournout, 2008 ABQB 98

On February 8, 2008, Associate Chief Justice Neil Wittmann of the Alberta Court of Queen’s Bench struck down the $4000 cap on non-pecuniary damages for soft tissue injuries incurred in motor vehicle accidents. The cap was imposed in October 2004 via the Minor Injury Regulation, Alta. Reg. 123/2004 (“the MIR”). Justice Wittman’s decision quickly became an election issue, with leaders of Alberta’s major parties each staking out their territory on auto insurance. Premier Stelmach announced that the government would seek a stay of the ruling pending an appeal to the Alberta Court of Appeal. Liberal leader Kevin Taft countered that a Liberal government would not appeal the decision, and NDP leader Brian Mason used the opportunity to advocate for a public auto insurance system. On February 25, 2008, Justice Wittmann denied the stay application. This means that his original ruling, which struck down the cap without providing time for the government to amend the MIR, takes immediate effect.

Category: Insurance Law

Another stay of judgment denied in the challenge to Alberta’s cap on damages for soft tissue injuries

Not on Their Backs: Cap on Damages for Soft Tissue Injuries Struck Down; Court Denies Stay of Remedy Pending Appeal