Grevett v McIntyre

The case of Grevett v McIntyre involved a personal injury claim following a motor vehicle accident. The plaintiff, who was a student at the time, sustained severe injuries including a head injury that resulted in organic brain damage, bone fractures, abdominal injuries, and multiple abrasions, bruising, lacerations, and contusions. The court was tasked with approving and facilitating a compromise of the litigation, with specific consideration given to the allocation of compensation funds.

The central legal issue before the court was whether moneys proposed to be paid for past gratuitous care to the parents of the plaintiff should be considered assessable income for tax purposes, and whether the compensation should be diverted to the litigation guardian and his wife. The Public Advocate and the Public Trustee were invited to make submissions regarding the appropriate distribution of the compensation funds.

The court carefully considered the nature and purpose of the compensation payments. It was determined that the compensation for past services provided by the parents was not assessable income, as it did not represent income in the traditional sense but rather reimbursement for actual services rendered. Consequently, the court ruled that the compensation should be paid directly to the parents, and not diverted to the litigation guardian and his wife. This decision was based on the principle that the compensation was intended to cover the costs of care provided, rather than being a form of income.

The court's final orders included approving the compromise of the litigation and directing that the compensation be paid to the parents of the plaintiff, while ensuring that the Public Advocate and the Public Trustee had the opportunity to provide their views on the matter.