Personal injury cases come with an inherent difficulty. No matter the cause of the injury—be it a car accident, a sports injury, a slip and fall, or anything else—injuries by their very nature put people in a literally uncomfortable position. You are simultaneously in less than perfect health while being charged with more responsibilities than you had before the injury. Not only must you maintain all your day-to-day tasks, but you also get thrown into insurance claims, medical treatment, and employment issues. An Ontario personal injury lawyer will take this into account when processing your case, as all these factors have enormous bearing on your potential compensation. But how, exactly, is financial compensation calculated? As any Ontario personal injury lawyer knows, the calculus is more nuanced than you might think.
The Basics of Compensation
In legalese, your compensation as a result of a personal injury suit is known as damages. These damages can be grouped into two categories: pecuniary and non-pecuniary losses.
- Pecuniary Losses
- While “pecuniary” is just a fancy adjective for “relating to money”, in the legal sense a pecuniary loss is one that directly correlates to a financial loss. For instance, if you’ve been in a car accident and your car was damaged beyond the maximum amount covered by your insurance policy, the extra money out of your pocket is a pecuniary loss, and your Toronto personal injury lawyer will fight to regain that loss in your case.
- Non-pecuniary Losses
- Non-pecuniary losses are those that do not have a direct financial impact. They might include things like chronic pain, loss of enjoyment, the inability to do non-wage earning tasks, etc. However, non-pecuniary losses can still bring about financial compensation.
Legal Definitions of Compensation
In Canada, compensation is directed towards restitution. This means that the defendant is charged with restoring the plaintiff to their pre-accident circumstances as much as money will allow. According to the law, a plaintiff must be “fully” compensated for pecuniary losses and “fairly” compensated for non-pecuniary losses. But how are these terms assessed?
Since pecuniary losses are directly financial, their full compensation is relatively straightforward. If judged responsible, the defendant must pay the plaintiff the full cost of their financial losses. Non-pecuniary losses are more complicated. Canada’s approach to non-pecuniary loss is far more conservative than that of the US. You’ve surely heard of US cases where plaintiffs net millions of dollars for minor injuries. This is not possible in Canada. Because non-pecuniary losses are so difficult to quantify, Canadian law caps the total amount of compensation allowed for non-pecuniary losses. In 1978 the cap was $100,000, and it now sits at $250,000. Remember, though, that since pecuniary losses are easily measureable, they have no cap.
These figures only begin to explain the complexities of compensation for personal injuries in Canada. Any Ontario personal injury lawyer can help you through the claims process and litigation, but only the best Toronto personal injury law firm can secure you exactly the compensation you need. Book your free consultation as soon as possible if you’ve been injured in an accident.
Source:
http://prc.canadianpaincoalition.ca/media/ms_surv_pers_inj_ed2_2012.pdf