Fall 2008
NEWSLETTER to clients of Knox Insurance Brokers Ltd.
From Randy Bushey, A.I.I.C.,
General Manager
Fall 2008 |
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TOPIC: Legal Liability Issues
Q - How much can a Canadian commercial enterprise be sued for??
(In other words, how much liability coverage should you carry?)
A - Worst case scenarios will hopefully never happen to any of us reading this
newsletter. However, to adequately protect ourselves in the case of an accident, we need to be aware of current Canadian legal trends, including the maximum limits awarded by our courts.
In the last 8 years, the upper range of Canadian court awards for a single injury, have increased from approximately $6–700,000 to between $10–15 million.* That represents a 20-fold increase in the settlement amount of a catastrophic injury in less than a decade.
One of Canada’s largest settlements has recently been concluded involving a child who was 2 years old when he fell from an apartment building window in Toronto in 1997. He landed on the cement pavement below, suffering catastrophic injuries. The building owners were found liable at trial and the settlement for damages is almost $18 million.
This settlement is relevant because it sets a new benchmark on injuries to children
and young people no matter how the injury is caused. In other words, it is entirely possible that a similar settlement could be reached as a result of a vehicle accident involving your vehicle or mine.
This award has been upheld on appeal (Ontario Court of Appeal). The magnitude of this award suggests that the value of injuries relating to serious brain damage or quadriplegia is rapidly approaching $20 million.
Knowledge is the first step in managing risk. We recommend that our insureds consider carrying at least $5 million liability coverage on automobiles and all commercial business operations. Coverage limits to $25 million or $50 million (or beyond) are available.
*Jess Bush, Blaney McMurtry LLP
September 2008
Recent Large Ontario Court Settlements for Bodily Injury
Case: Sandu v. Wellington Place Apartments
Date of Loss: 1997
Decision Date: 2006, Appeal – 2008
Summary of Injury: 2-year old boy fell out of 5th floor apartment building
window sustaining multiple injuries including serious
brain damage.
Court Settlement: Approx. $18M
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Case: Marcoccia v. Gill
Date of Loss: 2000
Decision Date: 2007
Summary of Injury: 20-year-old male injured in an Ontario automobile
collision, suffered severe brain damage.
Court Settlement: Approx. $15.5
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Case: Gordon v. Greig, Morrison v. Greig
Date of Loss: 2003
Decision Date: 2006 and 2007
Summary of Injury: Two male passengers (each approximately 22 years of age) ejected from a vehicle where the driver lost control and the vehicle rolled over; first claimant rendered
quadriplegic, second sustained serious brain injury.
Court Settlement: Approx. $11.5M and $12.6M
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