What is the calculation of loss of capacity to earn income for a plaintiff?
British Columbia, Canada
The following excerpt is from Grigor v. Johal, 2008 BCSC 1823 (CanLII):
As far as the calculation of this loss is concerned, it is the loss of the capital asset of the capacity to earn income and not the lost earnings that is to be valued and compensated: Rosvold v. Dunlop, 2001 BCCA 1, 84 B.C.L.R. (3d) 158. Because it is the degree of the reduction in the plaintiff's capacity to earn income given his or her skills, education and abilities that is to be compensated, it is recognized that this type of award cannot be calculated in accordance with a mathematical formula, but rather must be assessed: Rosvold. One method of accomplishing this assessment is to compare the likely future income of a plaintiff if the collision had not occurred with the likely future income of the plaintiff now that it has occurred. In addition, the overall fairness and reasonableness of the award must be considered: Rosvold.
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