The taxpayer had failed to show that the allocation of the Minister of amounts received by it in settlement of two actions brought against its insurance company following the destruction of its sawmill by fire as between replacement of lost income (fully taxable business income), proceeds of disposition of building and compensation for loss of goodwill (eligible capital amounts) was unreasonable. In response to a submission of the taxpayer that a portion of the damages were non-taxable punitive damages, Lamarre T.C.J. stated (at p. 414):
"Bearing in mind that punitive damages are normally awarded by a court for malicious and oppressive misconduct, it would be surprising if the Insurers would have voluntarily agreed to pay damages to the appellant on that basis."