Ontario Court of Appeal: No Cap on Shared Fault Damages Under Negligence Act

• The Ontario Negligence Act determines liability and damages in multi-party injury cases.
• Defendants found at fault are jointly and severally liable to the plaintiff, regardless of individual fault percentages.
• Contributory negligence is apportioned proportionally under Section 3 of the Act.
• In situations where specific fault percentages cannot be determined, all parties are deemed equally at fault.

The interplay between sections 1 and 2 creates several strategic pressure points that must be navigated carefully.

In Ontario, when multiple parties are at fault in an injury case, the Negligence Act steps in to determine who pays what and how. The Act's Section 1 assigns fault percentages among defendants, making all found-at-fault defendants jointly and severally liable to the plaintiff. This means the plaintiff can collect the full judgment from any one defendant, regardless of their individual fault percentage. For instance, if Defendant A is 25% at fault and Defendant B has no assets but is 75% at fault, the plaintiff may still collect 100% of the judgment from Defendant A, who then pursues Defendant B for contribution. This scenario highlights the importance of understanding the Act's rules on shared fault in multi-party proceedings.

The Negligence Act operates as a framework for defendants to sort out their respective liabilities among themselves, while also protecting plaintiffs' rights. Section 3 addresses contributory negligence, where the plaintiff's share of blame is apportioned proportionally. The Act has eliminated the common law rule that any fault on the plaintiff's part would bar the entire claim. In situations where it's not practicable to determine specific fault percentages, all parties are deemed equally at fault under Section 4. This default rule serves as a practical backstop and only applies when evidence truly does not support a more precise split.

Understanding the Ontario Negligence Act's rules on shared fault and contributory negligence is crucial for lawyers in multi-party proceedings. By grasping these concepts, they can build stronger cases, protect their clients' rights, and pursue the right parties for contribution. The interplay between sections 1 and 2 creates strategic pressure points that must be navigated carefully. A defendant who settles with the plaintiff may still pursue contribution or indemnity from another tortfeasor, but this comes with risks, such as reduced contribution claims if they overpay on a settlement to close the file quickly.

Understanding the Ontario Negligence Act's rules on shared fault and contributory negligence can help lawyers in multi-party proceedings build stronger cases, protect clients' rights, and pursue the right parties for contribution.

Source: Original reporting via Shared blame and divided damages: what’s with Ontario’s Negligence Act?