McKellar Structured Settlements Inc.Rule 53.09 of the Ontario Rules of Civil Procedure
Rule 53.09 of the Ontario Rules of Civil Procedure
CALCULATION OF AWARDS FOR FUTURE PECUNIARY DAMAGES
Discount Rate
53.09 (1) The discount rate to be used in determining the amount of an award in respect of future pecuniary damages, to the extent that it reflects the difference between estimated investment and price inflation rates, is,
(a) for the 15-year period that follows the start of the trial, the average of the value for the last Wednesday in each month of the real rate of interest on long-term Government of Canada real return bonds (Series V121808, formerly Series B113911), as published in the Bank of Canada Weekly Financial Statistics for the 12 months ending on August 31 in the year before the year in which the trial begins, less 1 per cent and rounded to the nearest ¼ per cent; and
(b) for any later period covered by the award, 2.5 per cent per year. O. Reg. 488/99, s. 2; O. Reg. 263/03, s. 4 (1).
Gross Up
(2) In calculating the amount to be included in the award to offset any liability for income tax on income from investment of the award, the court shall,
(a) assume that the entire award will be invested in fixed income securities; and
(b) determine the rate to be assumed for future inflation in accordance with the following formula:
g rounded to the nearest ¼ per cent where,
"i" is the average of the value for the last Wednesday in each month of the nominal rate of interest on long-term Government of Canada bonds (Series V121758, formerly Series B113867), as published in the Bank of Canada Weekly Financial Statistics, for the 12 months ending on August 31 in the year before the year in which the trial begins;
"d" is,
(a) for the 15-year period that follows the start of the trial, the average of the value for the last Wednesday in each month of the real rate of interest on long-term Government of Canada real return bonds (Series V121808, formerly Series B113911), as published in the Bank of Canada Weekly Financial Statistics for the 12 months ending on August 31 in the year before the year in which the trial begins, less 1 per cent, and
(b) for any later period covered by the award, 2.5 per cent per year.
O. Reg. 488/99, s. 2; O. Reg. 263/03, s. 4 (2).
Note: Rule 53.09, as it read on December 31, 1999, continues to apply with respect to actions in which the trial has commenced before January 1, 2000. See: O. Reg. 488/99, s. 4.
