Jan 08, 2026 in News Legal News

Legal News: Why Ontario Courts Still Apply 5% Interest on Pain & Suffering—and What It Means for Injury Victims

When someone is seriously injured in Ontario, the law aims to compensate them not only for the harm they suffered but also for the time they’ve spent waiting for justice. One of the ways the legal system does this is through pre-judgment interest—an amount added on top of damages to reflect the delay between the injury and the final court award.

A recent line of Ontario Court of Appeal decisions—including Henry v. Zaitlen, 2024 ONCA 614 and Aubin v. Synagogue and Jewish Community Centre of Ottawa (Soloway Jewish Community Centre), 2024 ONCA 615—has confirmed something critically important for injury victims: the default pre-judgment interest rate for pain and suffering remains 5% unless a judge orders otherwise. This might sound like a small technical rule, but in real life it can significantly increase the financial responsibility insurers face, especially in serious injury cases involving long recovery timelines.

Below is a plain-language breakdown of what this means, why the courts continue to apply 5%, and how it can impact your settlement or trial award.

 

What Is Pre-Judgment Interest?

Pre-judgment interest is an amount added to your damages to compensate you for the time you have waited to be paid. Lawsuits—particularly personal injury cases—can take years to move from the date of injury to final resolution.

During that time, injured people often face mounting medical costs, lost income, and the day-to-day effects of chronic pain or disability. The law recognizes that delays are unfair to the person who did nothing wrong. Pre-judgment interest is meant to partially correct that imbalance.

Ontario’s rules for interest are set out in the Courts of Justice Act, and the Government of Ontario publishes the official interest rates online.

 

Why Pain & Suffering Damages Still Default to 5%

Even after changes to the Courts of Justice Act in 2015—changes that lowered interest on past income losses—the rate for non-pecuniary damages (better known as pain and suffering) did not change. The Act still presumes a 5% pre-judgment interest rate for these damages unless a judge decides it should be lowered.

Why keep it at 5%? Courts have repeatedly noted three key reasons:

1. Pain and suffering losses are unique

Unlike income loss, medical bills, or out-of-pocket expenses, there’s no precise math behind pain and suffering damages. These losses are subjective, deeply personal, and often lifelong. The 5% rate is meant to acknowledge the significant impact delays can have on someone living with chronic pain, disability, or life-altering trauma.

2. Low interest rates should not reduce fairness

Insurers have argued that because standard interest rates have been lower in recent years, courts should also apply lower rates for pain and suffering. But judges have repeatedly said that tying these damages to short-term economic trends undermines the purpose of compensating victims fairly.

3. The Legislature kept the 5% rate intentionally

When the law was amended, the government deliberately updated some interest provisions but left the pain-and-suffering section untouched. Courts see this as a clear signal that the 5% rate was meant to remain.

A deeper look at recent decisions that reinforce this point can be found in this analysis of plaintiff-friendly rulings.

 

Why This Matters for Serious Injury Cases

A 5% interest rate, applied over several years, can dramatically increase the total compensation an injured person receives—especially in catastrophic or long-duration cases.

Consider:

• A case that takes 5 years to resolve
• A pain-and-suffering award of $150,000

At 5%, the interest added could be tens of thousands of dollars, depending on the timing of milestones in the case. This is money the insurer—not the victim—must pay.

For many clients, this interest is not merely a mathematical add-on. It recognizes:

• Time lost to rehabilitation
• Delays caused by insurance disputes
• Hardships endured while waiting for treatment, surgery, or expert assessments
• Time spent without the compensation they deserve

It can also create meaningful pressure on insurers to settle earlier, which helps reduce prolonged legal battles that injured people rarely want.

 

How Ontario Courts Calculate Pre-Judgment Interest

Calculating interest in personal injury cases isn’t always straightforward. It can depend on:

• When the injury occurred
• When the lawsuit was started
• Changes in the law
• Which category of damages the interest applies to

This is why it’s important to consult a personal injury lawyer who can assess the specific details of your claim and ensure you aren’t leaving money on the table.

If you want a simple, plain-language explanation of how personal injury settlements work in Ontario more generally, you may find this overview helpful.

 

How a Personal Injury Lawyer Helps Protect Your Full Compensation

Insurers routinely seek to minimize payouts, and interest calculations are an area where many injured people don’t realize how much money may be at stake. A knowledgeable personal injury lawyer can:

• Ensure the 5% rate is applied where appropriate
• Challenge attempts to reduce interest to lower numbers
• Provide evidence of how delays have affected you
• Calculate your damages using current case law
• Negotiate effectively with insurers
• Prepare for trial if needed

Ontario injury law is complex, and the stakes are especially high for people suffering from serious physical or psychological harm. Personal injury lawyers Toronto residents trust often take a comprehensive approach, looking not only at the main damages, but also at how interest rules can significantly increase the final compensation.

To learn more about maximizing your recovery, including how lawyers build stronger claims, explore this resource: How lawyers help in maximizing compensation

 

What This Means for You

If you’ve been injured in Ontario, the confirmation of the 5% default interest rate on pain and suffering is good news. It reinforces your right to fair compensation and acknowledges the real-world delays built into the legal system.

This can matter even more in cases involving:

• traumatic brain injuries
• spinal cord damage
• chronic pain disorders
• psychological trauma
• long-term disability

In these situations, the interest added can meaningfully increase the final value of your claim.

The key is understanding how these rules apply to your case—and ensuring insurers don’t succeed in reducing the rate.

 

Final Thoughts

The Ontario courts’ continued support for a 5% default interest rate on pain and suffering is an important protection for injured people. It reflects the realities of litigation delays, the seriousness of non-economic losses, and the need for fair compensation in a system where recovery can take years.

If you or a loved one is navigating a serious injury case, speaking with a qualified personal injury lawyer can help ensure you’re receiving everything the law allows—not just the base damages, but the interest you’re entitled to as well.