Recovering from a personal injury as result of a car accident is both an emotional and financial burden. You will want to seek to recover damages from a negligent driver. In Ontario, these damages may include a financial award for loss of income, out-of-pocket expenses for recovery, and an amount for your pain and suffering due to the accident.
Given that it may take a long time for your case to be decided in court or for a settlement to occur, prejudgment interest may be awarded on your damages. It is important to send a notice letter to the driver and owner of the vehicle which struck you, with a copy to their insurer, as soon as possible.
What is a Notice Letter?
A notice letter is just that: a formal notice to the negligent parties advising that you are holding them responsible for the accident, which caused your injuries and losses. The letter should be specific. It should set out where, when and how the accident happened, and identify the claimants.
What is the Significance of a Notice Letter?
The date on the notice letter will be used as the start date for the calculation of prejudgement interest. The start date is in most cases the date on which the accident occurred.
Prejudgment interest is calculated on the amounts recovered for general damages (pain and suffering), income loss, out-of-pocket expenses and other kinds of damages. The quantum of interest is established by provincial legislation and currently stands at 1.5% per annum.
It is important to calculate the prejudgment interest amount when engaging in settlement negotiations. As a plaintiff, you will want to know what the prejudgment interest would be if you’re considering an all-in settlement. This interest amount can be significant.
If you need assistance with your personal injury matter, call Douglas Strelshik Law. For over 22 years, Douglas Strelshik has focused on representing only injured parties in his personal injury practice.