How is the present value of a loss of income calculated when a plaintiff is injured in a motor vehicle accident?
British Columbia, Canada
The following excerpt is from Sherry v. CIBC Mortgage Inc., 2014 BCSC 1199 (CanLII):
The technique of discounting a calculation of lost future income to present value is quite standard in damage awards for breach of contract, where the award represents what the injured party wold have received had the contract been fulfilled. Such an award represents a lost future stream of income and the present value principle reflects the simple economic fact that a dollar today is worth more than a dollar in the future, due to inflation and that the recipient of the award will have the opportunity to invest that amount: see Townsend v. Kroppmanns, 2004 SCC 10 at para. 5 for a discussion of this principle in the context of an award for personal injury.
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