Keizer v. Hanna and Buch

Keizer v. Hanna and Buch

Majority allowed the appeal on quantum and held that damages under The Fatal Accidents Act must be calculated by capitalising the dependants’ disposable income (net of income tax and personal allowances) over the appropriate expectancy using a market‑based discount rate with allowance for contingencies; applying...

Source-derived case information.

Citation
[1978] 2 SCR 342
Parties
Plaintiff/appellant: Marilyn E. Keizer; Defendant/respondent: Herbert Lewis Hanna; Defendant/respondent: John Buch
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 January 1978
Procedural Posture
Appeal to Supreme Court of Canada From Court of Appeal for Ontario (fatal Accidents/tort Action) / Final Appeal (judgment on Liability and Quantum)
Outcome
Appeal allowed; cross‑appeal dismissed (Judson and de Grandpré JJ. dissenting on quantum)
Legal Topics
Vicarious Liability Under Vehicle Registration, Fatal Accidents Act Damages, Deductibility of Income Tax in Damages, Contingency Deduction in Capitalisation, Discount Rate/actuarial Valuation, Highway Traffic Act S.132 Ownership
Source Language
english
Motor Vehicles Torts Insurance Law Civil Procedure Actuarial Damages Assessment Vicarious Liability Under Vehicle Registration Fatal Accidents Act Damages Deductibility of Income Tax in Damages +3 more

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Summary, issues, holding and outcome

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Parties

Marilyn E. Keizer

Plaintiff/appellant

Herbert Lewis Hanna

Defendant/respondent

John Buch

Defendant/respondent

Procedural Posture

Appeal to Supreme Court of Canada From Court of Appeal for Ontario (fatal Accidents/tort Action) / Final Appeal (judgment on Liability and Quantum)

Legal Issues

  1. 1 Whether registered owner (vendor) was vicariously liable under s.132 of The Highway Traffic Act despite sale agreement and retained title arrangements
  2. 2 Whether income tax must be deducted when capitalising future pecuniary loss under The Fatal Accidents Act
  3. 3 Proper actuarial method: choice of discount rate and allowance for contingencies when capitalising future support

Ratio Decidendi

Majority allowed the appeal on quantum and held that damages under The Fatal Accidents Act must be calculated by capitalising the dependants’ disposable income (net of income tax and personal allowances) over the appropriate expectancy using a market‑based discount rate with allowance for contingencies; applying that approach and capping recovery at the pleaded $100,000 less $6,500 no‑fault benefits, the appellant was awarded a net sum of $93,500 with $78,500 to the widow and $15,000 paid into court for the infant; the Court also upheld vicarious liability of Buch under s.132 of the Highway Traffic Act on the facts.

Court Disposition

Appeal allowed; cross‑appeal dismissed (Judson and de Grandpré JJ. dissenting on quantum)

Orders

  • Appellant to recover from the defendants the sum of $93,500 CAD
  • Pay to appellant Marilyn E. Keizer $78,500 CAD