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Damages Arising From Future Loss of Income Determined on Gross, Not Net Basis

June 25, 2019

MacDonald v MacVicar, 2018 NSSC 272 provides judicial guidance on s. 113BA(1) of the Insurance Act, RSNS 1989, c 231 (“Act”), holding that future loss of income damages for plaintiffs injured in motor vehicle accidents should be calculated on a gross, rather than net basis.

In MacDonald v MacVicar, 2018 NSSC 271, the court held that the Plaintiff, Kimberly MacDonald was entitled to future loss of income damages from her motor vehicle accident against the Defendant, Ralph MacVicar. Importantly, the court held that the award should be calculated on a gross basis and not subject to income tax, CPP or other deductions.1 The reasons for a gross basis calculation are set forth in the supplemental decision, MacDonald v MacVicar, 2018 NSSC 272 (“MacDonald”), discussed below.

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