Two Impactful Court Of Appeal Decisions Affecting Auto Claims

On September 19, 2017, the Ontario Court of Appeal released two decisions that have a profound impact on the automobile insurance industry: Cobb v. Long Estate, 2017 ONCA 717, and El-Khodr v. Lackie, 2017 ONCA 716. The decisions are very favourable to insurers. They deal with the deductible, prejudgment interest, collateral benefit deductions, assignment of future collateral benefits, and costs.

Cobb v. Long Estate

Facts

The action arose out of a motor vehicle accident in July 2008. The defendant driver was impaired. He died prior to trial.

At a 19 day trial, which concluded on October 5, 2015, the jury assessed the total damages at $220,000.

After deductions for the deductible and collateral benefits, and after adding in prejudgment interest, the final judgment was $34,000. The trial judge awarded the plaintiffs costs in the amount of $409,000.