What is the test for determining an award for loss of capacity to earn income?

36 An award for loss of future capacity to earn income is an attempt to evaluate the loss in value of the capital asset of the capacity to earn income where there is a "substantial" or "real" possibility that capacity has been diminished. In Pallos v. ICBC (1995), 100 B.C.L.R. 260 Finch J.A. (for the majority) described the various methods of assigning a dollar value to the loss of capacity to earn income, including the one advanced by the plaintiff, that is the present value of a nominal percentage loss per annum applied against the plaintiff’s expected annual income, as "equally arbitrary".

37 Pallos was considered by Hogarth J. in Grund v. Norberg, (16 February 1995, No. S0-1150 New Westminster) where at paragraphs 57 and 58 he concluded the authorities require consideration of two tests. The first is whether "at the time of trial the plaintiff has a compensable disability [such that she] will be in the future, less capable of earning ...." The second is whether there is a substantial possibility the plaintiff’s injury will "...at some future date ... cause changes or conditions that result in disability to the extent ..." the capital asset of earning capacity will be diminished.