In this post-trial ruling, the court considered the deductibility of past and ongoing LTD payments from the plaintiff’s trial award for loss of income. Justice Corthorn held that the defendant was entitled to deduct any tax withheld from the LTD provider from the loss of income award, and the defendant was entitled to a top up on each future LTD payment (i.e. the defendant is entitled to receive the gross LTD payment, even though some is withheld as a holding tax, and the plaintiff only ever received in her pocket the net LTD payment). The date of the assignment of future benefits was effective the date of the trial verdict (as opposed to the date of the Courts Order or after appeals were exhausted). The plaintiff was, however, entitled to a deduction for the reasonable costs incurred by her to preserve her rights to payments for LTD benefits between the date of the assignment and the payment of the jurys award. Finally, the Court ordered that the plaintiff co-operate with the defendant in respect of any mediation, litigation, or arbitration required to recover LTD payments.
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