What is the test for calculating the cost of loss of a person’s income as a result of a motor vehicle accident?

Alberta, Canada


The following excerpt is from Yakemchuk Estate v. St. Joseph’s General Hospital (Vegreville), 1998 ABQB 711 (CanLII):

This claim is pursuant to the principles set out in Duncan Estate v. Baddeley et al, (supra). At p. 172, Kerans J.A. stated: In my view, the law requires that we calculate the expenses that the victim would have incurred in the course of earning the living we predict he would earn. That sum will vary with the kind of employment, and the state in life of the victim. Neither "poverty-line" expenses nor "lost savings" are a reliable indicator of that sum. Rather, it should be a fair calculation of the future cost of lives Cases suggest a discount of 50% to 70%. My sense of the matter is that this an apt range....that calculation should include one for tax. Additionally, in this case, there should be a discount for the chance that the victim would not receive the optimal award calculated by the plaintiff’s actuary.

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