Car accident claim leads to Canada's highest ever compensation payout

A young Canadian man who resides in Toronto has been awarded a whopping $17 million in compensation, the biggest ever compensation settlement seen in a Canadian court.

The young man was just 20 years old when he accidently drove his Honda civic through a red light, causing a huge delivery truck to smash into his car.

The crash, which took place in early June 2000, left him with severe brain injury. Although he made a full physical recovery from his injury, he is permanently brain damaged and requires round the clock care.

The boy, now aged 28, lives with his mother and has no hope of following his dreams and going to college, or ever holding down a job.

His lawyer, Nancy Ralph, who was hired by his mother, secured the record breaking payout just shortly after she had won another victim Canada's previous largest personal injury payout of $13 million.

The money represents the cost of care for the victim, as well as loss of future earnings and compensation for the pain and suffering which he went through.

"What is really good, what this stands for, is that we are still in a compensation system," said Nancy Ralph after the victory.

The family were lucky in that he collided with a commercial vehicle which carries a much larger sum of liability coverage, so the family do actually stand a chance of seeing the money, despite the fact that Ford Motor Credit LLC who owned the truck may still appeal.

"In this case there was a huge policy," said Ms Ralph. "Ford had excess coverage of $20 or $25 million. This is why this judgement will be satisfied."

Lawyers representing Ford Motor Credit LLC were not happy with the decision, describing at as 'perverse', considering that the young driver was partially responsible as he ran a red light.

But the jurors ruled that the victim was 39 per cent at fault for going through the red light, while the truck driver was 61 per cent at fault because he was making a left turn.

Consequently, Ford's insurance company will have to stump up 61 per cent of the $17 million award, while the furniture store outside which the crash happened have already agreed to pay $1 million.

Meredith Libbey, spokesperson at Ford Motor Credit, said, "Of course we are disappointed, and we are reviewing the decision."

She said Ontario's law on the vicarious liability of vehicle owners has been changed so that leasing companies will no longer be exposed to such huge liability claims.

"Under current law this award would not have happened," said Libbey. "It goes back to a time when vehicles were driven by chauffeurs ... We don't have control over the driver of the vehicle or any passengers ... It was an outdated law. It was changed for good reason."

Ms Ralph said that the ruling was fair and that she has never been involved in any liability case where the person injured had pursued the driver or vehicle owner for more than the limit on their life insurance policies.

"If a regular person has this accident, and has only a million or two of liability coverage, the judgment would not be satisfied," she said.

The boy's mother simply said that the money would go a long way to help her provide the care that her son now needs on a daily basis, and will need for the rest of his life:

She said, "I would like to be around (for him), but I don't think that is possible age-wise. He is the youngest of my children, and he is going to need care to live on a day to day basis."