SGI in court dispute with surviving children of crash victim

Court has ruled in favor of the insurer, but plaintiffs’ lawyer files appeal

SGI in court dispute with surviving children of crash victim

Insurance News

By Lyle Adriano

Saskatchewan Government Insurance (SGI) is currently embroiled in a legal dispute with the surviving children of a man who died in a car crash in 2014, who claim they are owed more benefits for their father’s death.

The man in question, Garry Johnson, died on August 09, 2014. According to a written decision from the Court of Queen’s Bench Saskatchewan, Johnson had no surviving spouse at the time of the crash. He is survived by three children – the plaintiffs in the current case – who were all under the age of 21 at the time of the accident.

Sometime in 2015, SGI determined that due to the absence of a surviving spouse, the minimum death benefit of $66,696 should be split equally among the three children.

However, this decision did not sit well with the children, who took to court arguing that they should each receive the full share of what a surviving spouse would have received.

Jonathan Abrametz, the children’s lawyer, maintained that a clause in The Automobile Accident Insurance Act – which declares that the spousal benefit should go to “the dependant” – should be interpreted literally. Abrametz contended that the singular word “dependant” applies to each of the children, and thus each is entitled to a full benefit.

CBC News reported that Justice B. Scherman ruled earlier this month in favour of SGI. The judge reasoned that “in common parlance” there can only be one spouse, and thus only one spousal benefit.

“When the legislature directed in s. 145(2) that if there is no spouse ‘the dependant’ is entitled to the spousal death benefit, this was no doubt intended to provide her children the same benefits flowing from her spousal benefits they would have received had she survived,” the judge further explained.

Scherman also pointed out that the plaintiff’s request would have “absurd consequences.” She then gave a hypothetical scenario wherein the request was honored:  the children of one person killed in a crash who had a surviving spouse would effectively receive a collective $66,000 through their parent, but the five children of a second person killed who had no surviving spouse would each receive $66,000.

Abrametz said that he has already filed an appeal on behalf of his clients, expecting the case to be considered by an appeals court next year.

“Not only have they had to lose a father, but they’ve also had to come to the realization that they dispute what SGI has provided them in terms of death benefit,” the lawyer said.

 

 

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