April 18, 2022
On March 28, 2022, the Supreme Court of Newfoundland and Labrador (General Division) decided that in a personal injury case, quantification of damages is governed by the law of the place where the action is started and entitlement to damages is governed by the law of the place where the accident occurred. And while the practical impact in Harris v. Hillyer was relatively minor, it could be significant depending on the jurisdictions involved and whether the Family Protection Endorsement is in play. Here’s a look at the case and the potential impact of jurisdiction in a conflict of laws situation.
The Case. A number of passengers injured in a bus accident started actions in Newfoundland & Labrador against the bus driver and the bus company. The accident occurred in Nova Scotia, but all of the parties (both Plaintiffs and Defendants) were domiciled in Newfoundland & Labrador. Neither liability nor entitlement to damages were in issue. The parties asked the Court to rule on whether the law of Nova Scotia or of Newfoundland & Labrador applied in the calculation of the Plaintiffs’ damages. This was pertinent because Nova Scotia legislation limits the award for general, non-pecuniary damages in respect of minor injuries to $7,500 plus inflation for the year of the accident ($8,937.00 for accidents occurring in 2021). However, Newfoundland & Labrador has no legislated cap. The Court found the logic of decisions from other provinces, while not binding on it, was persuasive and concluded that in a personal injury case, quantification of general, non-pecuniary damages is governed by the law of the place where the action is commenced. In this case, that meant Newfoundland & Labrador – and therefore it wasn’t subject to a cap.
The Practical Impact. The resolution of the conflict of laws issue in Harris v. Hillyer resulted in a relatively minor impact. However, the practical impact of jurisdiction could be much more significant in other situations.
Please contact your McInnes Cooper lawyer or any member of our Insurance Defence Team @ McInnes Cooper to discuss how a conflict of laws impacts the calculation of damages.
McInnes Cooper has prepared this document for information only; it is not intended to be legal advice. You should consult McInnes Cooper about your unique circumstances before acting on this information. McInnes Cooper excludes all liability for anything contained in this document and any use you make of it.
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