Carfra Lawton LLP | Victoria BC

Loans Are Not Recoverable Under Special Damages

In Healey v Chung 2014 BCSC 429 the court confirmed that a loan, whether from a family member or not, will not be recoverable under special damages.

The plaintiff was injured in a pedestrian -vehicle collision that occurred in September 2004. The court rejected the bulk of the plaintiff’s evidence regarding the nature of the accident and the injuries he claimed, finding he was not a credible witness. In particular, the court rejected the plaintiff’s claim for special damages including money he said he borrowed from his mother.

The court found that the plaintiff was unable to prove the borrowed monies were used for therapy for accident related injuries. Only interest paid on borrowed money could even be considered a special damage. Here, there was no evidence the plaintiff had agreed to pay or actually paid interest on a loan, and thus no amount was allowed for that claim for special damages.

Case commentary by: Fareeha Qaiser