When the courts hand out compensatory damages, they’re not just writing a cheque — they’re writing history. In Canada, some of the largest payouts have come from cases that captured the attention of legal professionals.
In this article, we’ll discuss its basics, plus the biggest compensatory damages awarded by Canadian courts in history. This article can be used by lawyers as references for the cases they’re handling, or as an educational piece for their clients.
What are compensatory damages?
There are many types of damages that can be awarded in torts cases, such as personal injury cases. This includes compensatory damages and non-compensatory damages. Non-compensatory damages include punitive, aggravated, and nominal damages.
As for the compensatory ones, there are two subtypes:
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general: also called pain-and-suffering damages, these are to compensate for the plaintiff’s emotional distress or mental suffering caused by the defendant’s wrong or negligence
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special: also called actual damages, which compensate for the out-of-the-pocket expenses of the plaintiff to recover from their injuries, which may include existing costs and for future care
Compensatory damages are meant to restore a person — may not be literally, but at least economically — to their situation before the injurious wrong or accident happened. When proper, it’s paid by the defendant, who caused the wrong or accident, to a successful plaintiff.
As such, it’s meant to compensate the victim for their actual losses, whether it be pecuniary or non-pecuniary. Regardless, all court-awarded or settlement damages must be fair, calculated based on evidence, and must have its own legal basis.
Here’s a video that explains more on what compensatory damages are:
Want to file a claim for compensatory damages? Reach out to any of the best personal injury lawyers in Canada as ranked by Lexpert.
Example of compensatory damages
Compensatory damages are awarded, not just for personal injury cases, but for other civil cases where damages are sought by the plaintiff. This includes cases where the plaintiff was illegally dismissed by their employer, or when they’re victims of abuses (e.g. physical, sexual, psychological).
Here are some situations where these types of damages may be awarded by the court:
- medical malpractice
- motor vehicle accidents
- product liability
- slip-and-falls
- workplace accidents
What are the biggest compensatory damages in Canada?
Unlike general damages, which are capped by common law, special damages do not have a maximum limit. What is needed is that the amount claimed is substantiated by proof and has a legal basis. But adding both general and special damages, some cases have ballooned up to millions of dollars.
Here are some of the cases with the largest compensatory damages in Canadian history:
- $300,000: Hill v. Church of Scientology of Toronto
- $1 million: Matthews v. Ocean Nutrition Canada Ltd.
- $2.3 million: H.N. v. School District No. 61 (Greater Victoria)
- $2.5 million: Dhaliwal v. Wu
- $15 million: Boyd et al. v. Edington et al.
- $18.4 million: MacNeil v. Bryan
- $32.5 billion: CQTS-Blais class action
We’ll discuss these cases below, focusing on the factors that caused the compensatory damages to become that large. Here’s a short video on how these damages work under Canadian laws:
Want more info about filing a case for compensation and damages? Cconsult with the best personal injury law firms in Canada as ranked by Lexpert.
Hill v. Church of Scientology of Toronto: $300,000
In the case of Hill v. Church of Scientology of Toronto, [1995] 2 SCR 1130, Casey Hill was awarded $300,000 as general damages. This is in addition to the aggravated damages of $500,000 and punitive damages of $800,000.
While this is an action for damages in libel, which is slightly different from our usual personal injury cases, compensation for damages is still deemed proper. Here, Hill sought damages after the allegations against him by Morris Manning and the Church of Scientology were found to be “untrue and without foundation.”
In justifying the award of $300,000, the Supreme Court said that:
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at the time that the libelous remarks were made, Hill was a young lawyer in the Crown Law office, whose integrity and reputation among the public were affected after the libelous statements were made
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the manner of doing the libelous statement “was very carefully orchestrated,” where members of the press were invited and the Osgoode Hall was used as a background to make it appear that the statements were all true
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the misconduct of Morris and the Church of Scientology continued, even after the first publication of the libelous statements, and even with their knowledge that the statements were indeed false
Notably, this is one of the cases where the cap of general damages was not applied. Here, the Court held that the cap on general damages should not be placed in cases of defamation.
Matthews v. Ocean Nutrition Canada Ltd.: $1 million
In an employer-employee dispute, the case of Matthews v. Ocean Nutrition Canada Ltd., 2020 SCC 26 is one of the cases that awarded a relatively large amount of compensatory damage.
David Matthews was declared by the Supreme Court to be constructively dismissed by Ocean. It was also held that Matthews must have been given a reasonable notice period of 15 months by Ocean prior to his dismissal.
By awarding a large sum of compensation, the Court held that were it not for the constructive dismissal by Ocean, Matthews would have received his benefits under Ocean’s long-term incentive plan (LTIP), among others.
After trial, the Supreme Court of Nova Scotia awarded Matthews $1,086,893.36 for his lost earnings, LTIP payment, and other benefits, which the Supreme Court affirmed. However, the amount of $78,000 is deducted for the money paid to Matthews by his new employer.
In discussing the propriety of the award of compensatory damages, the Court did not dwell on whether Matthews' LTIP benefits are integral. Instead, it focuses on figuring out if he’s entitled to it if he was not constructively dismissed by Ocean. In the end, the Court held in the affirmative, granting Matthews his much-earned LTIP payment.
H.N. v. School District No. 61 (Greater Victoria): $2.3 million
As for sexual abuse cases, one of the biggest and recent awards of compensatory damages was $2,338,241, in the case of H.N. v. School District No. 61 (Greater Victoria), 2024 BCSC 128.
Here, it was found that H.N. was just 11 years old when abused by Gary Redgate, H.N.’s tutor. In assessing the award of damages, the Supreme Court of BC considered the following:
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the sexual abuse spanned for approximately six years, which included both psychological manipulations and emotional abuses
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because of the abuses, H.N. suffered from complex, chronic PTSD, and eventually affecting the child’s overall development
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were it not for Redgate’s abuse, H.N. would have possibly obtained an undergraduate university degree, or even post-graduate degree/s
All of these justified the following amounts, of which the amount for future earning capacity is the highest:
- pain and suffering and aggravated damages: $225,000
- past earning capacity plus pre-judgment interest: $62,000
- future earning capacity: $1,997,000
- future care: $47,500
- special damages: $6,741
Dhaliwal v. Wu: $2.5 million
To be exact, the case of Dhaliwal v. Wu, 2024 BCSC 1380 involved a total of $2,506,875.90 as compensatory damages. Another instance of an injurious car accident, Megan Dhaliwal was a passenger of car rental service and suffered severe injuries.
Bulk of this award was the compensation for Dhaliwal’s loss of future earning capacity, which is the most contentious issue during trial. In calculating how much Dhaliwal would earn had the accident not happen, the court considered that, at the time of the accident:
- she was in her third year of a Bachelor of Commerce program
- she intended to become a financial analyst or investment banker
In a judgment in favour of Dhaliwal, she was awarded the following compensatory damages:
- non-pecuniary damages: $225,000
- loss of past earning capacity: $3,500
- loss of future earning capacity: $2,018,000
- cost of future care: $242,185.90
- special damages: $18,190
The decision is also a great reference on what a plaintiff must prove to be entitled to a large sum of loss of income earning capacity, just like in H.N.’s case.
Boyd et al. v. Edington et al.: $15 million
Held as one of the biggest medical negligence cases in Canada, the case of Boyd et al. v. Edington et al., 2014 ONSC 1130 involve an award of $15 million.
Danielle Boyd was granted such as award because of the negligence of her doctor, Dr. Richard Bruce Edington, in diagnosing her major stroke. As a result, she suffered from a catastrophic and debilitating brain injury.
One of the major points raised in this case was the breach of the standard of care by doctors, which was violated by Dr. Edington. The case is also instructive on how evidence play important roles in proving (or disproving) allegations of medical negligence, especially expert witnesses.
MacNeil v. Bryan: $18.4 million
The case of MacNeil v. Bryan, 2009 CanLII 28648 (ON SC) shows that car accidents are still one of the largest sources of awarded damages. Here, Katherine-Paige MacNeil was awarded $18,427,202.20 in total for damages, including prejudgment interest.
Being one of the cases that made it to our list of largest personal injury damages in Canada, the MacNeil case occurred in 2002 resulting in MacNeil’s injuries. The car that she was in, driven by Trevor Bryan, went through a stop sign, vaulted, and smashed into a ditch.
CQTS-Blais class action: $32.5 billion
As for class suits, the settlement reached between the plaintiffs and the big tobacco companies is, to date, one of the largest awards affirmed by the court. For $32.5 billion settlement, the tobacco companies of Philip Morris, British American Tobacco, and Japan Tobacco will be paying smokers and non-smokers in Québec.
In a plan approved by the Ontario Superior Court, the tobacco victims, their heirs and the heirs of heirs can receive up to $100,000. The amount for each claimant will depend on eligibility and adjustment of compensations. The plan will be implemented in 2025.
The settlement resolves the different cases that allege that, since 1950s, these tobacco companies knew of adverse effects of smoking, but did not warn its customers. For such wrong, this settlement award will compensate those who got lung cancer, throat cancer, and emphysema due to smoking.
Compensatory damages: a check for plaintiff’s compensation
Compensatory damage is an important curb of Canadian personal injury law. At its core, it offers essential financial relief to persons affected by accidents, wrongful actions, and negligence. The cases discussed here highlight the significant financial stakes involved, from the relatively smaller payouts to the large sums of awards. Whether for personal injury, defamation, or wrongful dismissal, compensatory damages ensure justice is served and victims are adequately compensated for all their losses.
Check out our directory of Canada’s Largest Law Firms for another reliable source of firms to rely on when it comes to claiming compensatory damages.