In Provost v. Bolton, 2018 BCSC 1090, Justice Butler analyzed the law surrounding the recoverability and deductibility from loss of income damages awards of employer-paid salary continuation “benefits” paid to an employee while absent from work because of injury. In summary, such benefits constitute an indemnity against the loss of income that would otherwise be incurred, and if the employer has a non-waived right of subrogation in respect of the payments (whether pursuant to contract or in equity), then the payment will be treated as a “non-deductible collateral benefit” which does not impair the plaintiff’s right to recover the same monies as damages in the personal injury action: Provost, paras. 50-62).
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