N.S. court upholds cap on accident payouts

Two women injured in car accidents have lost their fight to have Nova Scotia's $2,500 cap on injury claims tossed out.

"I'm very, very upset with the decision, not just for me but for thousands of people," said Anna Marie MacDonald.

MacDonald and Melissa Gionet argued the cap on payouts for soft-tissue injuries was unfair. They said the definition of a minor injury discriminates against people with chronic pain, especially women.

MacDonald was hurt in a car crash in November 2003 and another in October 2004. Gionet was seven months pregnant when she was in an accident in December 2003 that left her unable to return to work.

"I've been in therapy for quite a while, ongoing five years now, and $2,500 doesn't pay for my therapy for six months," MacDonald said.

In a 94-page decision released Monday, Supreme Court Justice Walter Goodfellow rejected their arguments.

He said Gionet and MacDonald didn't show that their rights had been violated, nor did they prove that sufferers of soft-tissue injuries are "stigmatized or disadvantaged by society."

The court ruling is a major victory for the insurance industry, which claims average insurance premiums have fallen by $300 since the cap on injury payouts took effect in 2003.

"The judge has agreed that the limitations on soft-tissue injuries were reasonable and consumers in Nova Scotia will continue to benefit," said Bill Adams, with the Insurance Bureau of Canada.

The government introduced the cap in response to public complaints about skyrocketing insurance rates. Besides bringing in the cap, the government also reduced premiums by 20 per cent.

Lawyers for the complainants plan to appeal the decision, personal injury lawyer David Brannen said on his blog.