How should a contingency deduction be calculated in assessing future income loss?
British Columbia, Canada
The following excerpt is from Pickwell v Rotter, 2022 BCSC 18 (CanLII):
The Court of Appeal also recently considered the proper approach to contingency deductions in assessing future income loss in Lo v. Vos, 2021 BCCA 421. In that case, like this one, the contingency deduction in issue related to the risk of the plaintiff developing mental health issues. The trial judge had applied a 20% contingency deduction to the awards for non-pecuniary damages, damages for loss of future income earning capacity and cost of future care, on the basis that there was a real and substantial possibility that the plaintiff would have developed a major depressive disorder consequent on chronic lower back pain even without the Accident. The Court of Appeal disagreed that the evidence established a real and substantial possibility of such a future event:
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