Court of Appeal denies stay in Alberta minor injury cap case

The Court of Appeal in Alberta has denied an application by State Farm Insurance Company for a stay of the judgement that eliminated the $4,000 cap on non-pecuniary damages for minor injuries caused by a motor vehicle accident.

In Morrowv. InsuranceBureauof Canada, State Farm is the insurer of the appellants involved in a motor vehicle accident with Peari Morrow, who was awarded non-pecuniary damages in excess of $4,000. State Farm was granted a stay of the judgement awarded to Morrow, but applied for a broader stay due to the risk that any settlements or judgements paid out in excess of $4,000 will not be recoverable if the cap is found to be constitutional, according to the decision.

“Although the failure to show irreparable harm is sufficient to dismiss this application, I note additionally, that the balance of convenience, does not favour a stay,” Alberta Court of Appeal Justice Patricia Rowbotham states in the decision. “A stay would perpetuate the stereotypes described in [Alberta Court of Queen’s Bench Neil] Wittmann’s decision. It would harm the public interest in failing to uphold Charter rights and would negatively affect claimants by interfering with their actions. There are potentially many Albertans affected by the trial judgment and who would be affected by the stay,” she continued.

“The nature of the harm alleged by State Farm and the Insurance Bureau of Canada is financial. Moreover, the administrative proposal advanced by State Farm for addressing claims in the interim during a stay period is no less cumbersome, perhaps more so, than by simply addressing each case on an individual basis. Weighed against the harm of granting a stay, the balance of convenience does not favour granting a stay.” •