Can an Ontario accident benefits settlement be approved when the injured person lives abroad?
Yes — an Ontario court can approve a statutory accident benefits (SABS) settlement even when the injured person lives outside Canada, provided the court is satisfied the deal is reasonable and genuinely protects that person’s interests. In Wang v. Safety Insurance Company, 2026 ONSC 3237 (CanLII), a Superior Court judge approved a settlement covering both past and future accident benefits for a catastrophically injured applicant residing in China, working through a series of practical challenges along the way.
What is a SABS settlement, and why does it need court approval?
Statutory accident benefits are the no-fault benefits available to anyone injured in a motor vehicle collision in Ontario, regardless of who caused the crash. They can cover income replacement, attendant care, medical and rehabilitation expenses, and more. When the person receiving those benefits is under a legal disability — meaning they cannot manage their own legal affairs due to injury or incapacity — any settlement of their SABS claim must be reviewed and approved by a court. The court’s job is to act as a safeguard, making sure the injured person is not giving up rights for less than fair value. Our Ontario accident benefits lawyers regularly guide families through this process.
What did the court look at when deciding whether the settlement was fair?
The court weighed several factors before approving the deal. First, the nature and severity of the injuries mattered enormously — the applicant had been found to meet the threshold for catastrophic impairment, the most serious classification under Ontario’s accident benefits regulation (O. Reg. 34/10). Second, the court considered life expectancy and the realistic cost of ongoing care. Third, and unusually here, the judge factored in that care costs in China are substantially lower than in Ontario, which affected the overall value of future benefits the applicant would actually need. Documentation and translation challenges were also acknowledged as part of the practical landscape. Finally, the court noted that interest earned on settlement funds held in a high-interest account would itself form part of the overall consideration — a detail that can meaningfully increase the real value of a lump-sum settlement over time.
What happens when the injured person cannot sign their own legal documents?
When someone cannot manage their legal affairs, a litigation guardian steps in to act on their behalf. Normally, that litigation guardian must file a sworn affidavit confirming they understand their duties and will act in the person’s best interests. In this case, the court dispensed with that affidavit requirement. The judge relied on a prior procedural endorsement that had already been applied across related proceedings for efficiency and proportionality, recognising that requiring the same paperwork again would add cost and delay without meaningfully protecting the applicant. This kind of procedural flexibility is available under Rule 7.08(4)(a) of Ontario’s Rules of Civil Procedure, and courts will use it when the circumstances justify it.
Were the lawyers’ fees approved, and how did the court assess them?
Yes, the legal fees were approved. Rather than simply rubber-stamping the contingency fee agreement, the court took a quantum meruit approach — meaning it looked at what the work was actually worth based on the time spent and the results achieved. The judge reviewed the docketed hours across both the tort action and the SABS file, confirmed that the fees and HST were reasonable, and found that the total billed was actually less than the full time recorded. The court also credited the lawyers for work that went beyond standard litigation, including negotiating a hospital lien and arranging the high-interest account for the settlement funds. This kind of independent review is exactly what court approval is designed to provide.
How will the settlement money be managed for someone living in China?
Managing a large settlement for a person who lives abroad — and who cannot manage their own affairs — requires a thoughtful plan. The court approved a proposal involving an attorney for property appointed in China, staggered investments over six years, and compliance with China’s State Administration of Foreign Exchange (SAFE) pre-approval process, which governs large international wire transfers. A comparable approach had already been approved in the related tort action, and the court found it was reasonable and genuinely served the applicant’s best interests. The approval of a management plan under Rule 7.09 of Ontario’s Rules of Civil Procedure is a separate step from approving the settlement itself, and both must satisfy the court.
Practical takeaways for accident benefits claimants and their families
- Court approval is a protection, not a hurdle. If your family member cannot manage their own affairs, the court approval process exists to make sure any settlement is truly fair — not just convenient for other parties.
- Where the injured person will live long-term affects the value of future benefits. Costs of care vary significantly by location, and courts will consider that reality.
- Legal fees in approved settlements are independently reviewed. You are not simply bound by whatever fee agreement was signed — the court scrutinises the account separately.
- Settlement funds can be managed abroad if the plan is sound. International wire transfers and foreign investment structures can be approved, but they require careful preparation and documentation.
- Procedural flexibility exists for complex cases. Courts can streamline requirements like affidavit filings when doing so serves efficiency without sacrificing fairness.
If you or a family member has been seriously injured in a collision in Ontario, our motor vehicle accident lawyers at UL Lawyers can help you understand your accident benefits rights and navigate the court approval process. We offer a free initial consultation from our Burlington office and serve clients across Ontario — reach out today to get started.
This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.
FAQ
Frequently asked questions
Catastrophic impairment is the most serious classification under Ontario's Statutory Accident Benefits Schedule. It applies to injuries such as paraplegia, severe traumatic brain injury, or other conditions meeting specific medical criteria, and it unlocks significantly higher benefit limits for medical, rehabilitation, and attendant care expenses.
Yes — when the injured person is under a legal disability, any settlement of their accident benefits claim must be approved by a court. The litigation guardian presents the proposed deal and the court decides whether it is reasonable and in the person's best interests before it becomes binding.
Generally yes — entitlement to Ontario statutory accident benefits is based on the collision occurring in Ontario and the policy being Ontario-based, not on where the injured person later resides. However, managing ongoing benefits and any settlement for someone living abroad involves additional practical and legal steps.