Feds lose Canadian Forces lawsuit

The federal government is still weighing its options after losing a five-year legal battle over Canadian Forces disability benefits.

On Tuesday, a federal court judge ruled the feds were wrong to make deductions from veterans' long-term disability benefits by the monthly amount they receive under their disability pensions.

The claw back "wholly deprives disabled veterans of an important financial award intended to compensate for disabling injuries suffered in the service of Canadians," Justice Robert Barnes wrote in his judgment.

Barnes argued offsetting the payments had a "particularly harsh effect on the most seriously disabled CF members who have been released from active service."