It is generally accepted that if your client is impecunious, he or she will likely be judgment proof. The recent decision in Leochko v. Rostek, 2013 ONSC 7899 (CanLII) might give some plaintiff’s counsel cause for concern.
In 2005, Ms. Leochko was involved in a motor vehicle accident. She was not able to successfully return to work after the accident and she started receiving income replacement benefits (“IRBs”). In 2007, the insurer stopped the IRBs but they were reinstated in October 2009. The benefits continued to be paid but were reduced as a result of Ms. Leochko receiving Canada Pension Plan benefits. As part of the reinstatement, Ms. Leochko also received arrears of IRBs of $43,967.95. Between 2007 and October 2009, Ms. Leochko fell behind on her bills and had to declare bankruptcy.Read more