Alberta’s $4,500 cap on soft-tissue claims will remain in place as the Supreme Court of Canada this week refused to take on the issue.
The controversial cap had gone through two levels of Alberta’s judicial system. Alberta’s Court of Queen’s Bench first ruled it unconstitutional in February 2008. However, the Court of Appeal overturned that ruling in a unanimous decision last June. The last chance for the cap to be removed was for the Supreme Court to review the case.
The cap restricted the amount a victim of negligence could receive as compensation for pain and suffering as the result of an auto insurance claim. It was the brainchild of former premier Ralph Klein as a way to put a lid on escalating auto insurance premiums in 2004.
A former injury lawyer, St. Albert member of Parliament Brent Rathgeber fought the original bill as a Tory member of the Klein government.
“I wasn’t surprised. I was certainly disappointed,” Rathgeber said of the Supreme Court’s decision.
It was unlikely the country’s highest court would take on the case because the Alberta Court of Appeal decision was unanimous, Rathgeber said. Also, the case is strictly an Alberta issue and the Supreme Court prefers to take on cases of national scope, he said.
The decision means the issue is over unless a future provincial government wants to re-open it.
“I can’t imagine a government being particularly eager to re-open this file,” Rathgeber said.
The decision should mean stability in Alberta’s auto insurance premiums but also a loss for victims of motor vehicle negligence, he said.
“If you are injured by a negligent driver, your ability to seek meaningful compensation is taken away,” Rathgeber said.
The province was pleased that the issue has been finally put to rest.
“We are pleased the Supreme Court of Canada has decided not to hear this case, therefore finally putting to rest any questions about the constitutional validity of Alberta’s auto insurance system and helping ensure auto insurance remains affordable and accessible for Albertans,” said Finance and Enterprise Minister Iris Evans.
“We believe we have a well-functioning auto insurance system that strikes a fair balance between those who pay insurance premiums and those who are injured in automobile accidents,” she added.
The cap was originally $4,000 but the government recently raised it to $4,504 to account for inflation.
