What is the test for deducting in lieu of severance from the assessment of damages?
British Columbia, Canada
The following excerpt is from Whetung v. West Fraser Real Estate Holdings et al, 2007 BCSC 990 (CanLII):
A case cited by the defendant bears some comment. In Salmi v. Greyfriar Developments Ltd. [1995] A.J. No. 1089 (ABCA) Worker’s Compensation benefits paid to an employee as a result of a work related accident during the period of time he was found to be entitled to pay in lieu of severance were deducted from the assessment of damages as being comparable to earnings received from new employment during the appropriate severance period. The situation is not one where a right of subrogation such as expressed in Section 10 of the British Columbia statute would apply and accordingly non-deduction would inevitably result in double payment.
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