Alberta government appeals court ruling that finds auto injury cap unconstitutional

The Government of Alberta has appealed an Alberta Court of Queen’s Bench decision that would eliminate a Cdn$4,000 cap on soft tissue injury awards to auto collision claimants.
Alberta Premier Ed Stelmach told reporters in a scrum that the government would seek a “stay” of the court ruling, meaning the decision would not take effect pending the outcome of the government’s appeal.
In Morrow v. Zhang, two plaintiffs, Peari Morrow and Brea Pederson, suffered soft tissue injuries arising out of two separate automobile accidents.
Alberta Court of Queen’s Bench Associate Chief Justice Neil Wittmann found that the government’s Cdn$4,000 on their injuries was unconstitutional under s. 15 of the Charter.
Wittman said the appropriate remedy was to eliminate the government’s Minor Injury Regulation. With the cap thus removed, the judge awarded Cdn$21,000 in damages to one plaintiff and $15,000 to the other.
Stelmach told reporters “after careful review, the government firmly believes it’s in the best interests of Albertans to appeal the judge’s decision and apply for a stay. “It’s based on ensuring auto insurance rates remain affordable.”
Alberta Insurance Bureau of Canada representative Jim Rivait said Alberta auto rates have been reduced by about 18% since the cap took effect during the reforms of 2004.
The cap was one way for insurers to control claims costs, which has an effect on premium rates.
IBC general counsel Randy Bundus said in a statement that “we are grateful to learn that Premier Stelmach has announced that the government of Alberta will be appealing the recently announced ruling on the Minor Injury Regulation.
“IBC will be participating as an intervener in that appeal because we believe firmly that maintaining reasonable limits on the cost of minor injuries is the best way to provide affordable and accessible auto insurance to the people of Alberta.
“We are confident that there are sufficient grounds to have this lower court decision overturned. ”