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Important changes to Rule 53.09 of the Rules of Civil Procedure effective in 2014
August 30, 2013
The Ontario government recently implemented revisions to the discount rate formula used in the calculation of awards for future pecuniary damages in Ontario (Rule 53.09(1)).
In a nutshell...
1- The new formula will result in a higher and always positive discount rate for the initial 15 year period
2- A higher discount rate results in lower present values of future payments
3- The discount rate after 15 years remains unchanged at 2.5%
4- The rewording of the rule will end the debate over the discounting of payments expected over 15 years after the date of valuation
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