The Nova Scotia Supreme Court has decided that Canada Pension Plan disability benefits are not deductible from damages of future income loss or lost earning capacity arising from a motor vehicle accident.
The recent decision of the Supreme Court of Nova Scotia in Holland v Sparks1 decides a question of law on whether s.113A of the Insurance Act applies to future Canadian Pension Plan (CPP) payments. This is a significant decision due to the impact on deductible amounts for injury claims resulting from motor vehicle accidents.