What are contingencies when calculating an award for loss of earning capacity?
British Columbia, Canada
The following excerpt is from Driscoll v. Desharnais, 2009 BCSC 306 (CanLII):
An award for loss of earning capacity is based on assumptions of future events, and therefore contingencies must be considered in the event that these assumptions may prove to be wrong. These contingencies are things that may affect future earnings, such as unemployment, illness, accidents and business depression. Dickson J. in Andrews v. Grand & Toy Alberta Ltd., 1978 CanLII 1 (SCC), [1978] 2 S.C.R. 229 at 253, 83 D.L.R. (3d) 452, provides some guide in adjusting for contingencies: First, in many respects, these contingencies implicitly are already contained in an assessment of the projected average level of earnings of the injured person, for one must assume that this figure is a projection with respect to the real world of work, vicissitudes and all. Second, not all contingencies are adverse…. Finally, in modern society there are many public and private schemes which cushion the individual against adverse contingencies. Clearly, the percentage deduction which is proper will depend on the facts of the individual case, particularly the nature of the plaintiff's occupation, but generally it will be small …
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Is a plaintiff entitled to an award for loss of future earning capacity calculated solely on the basis of mathematical calculations? (British Columbia, Canada)
In assessing future loss of earning capacity for loss of past and future earning capacity, what is the test for a loss of future earnings allowance? (British Columbia, Canada)
What are contingencies when calculating an award for loss of earning capacity in a motor vehicle accident? (British Columbia, Canada)
In assessing future loss of earning capacity for loss of past and future earning capacity, what allowances must be made and the award must be fair? (British Columbia, Canada)
In a loss of future earning capacity case, is a plaintiff entitled to an award for loss of earning capacity? (British Columbia, Canada)
Does loss of earning capacity award for a motor vehicle accident take into account factors which would have reduced income earning capacity even without the accident? (British Columbia, Canada)
Does a contingency rate apply to a plaintiff's award for loss of future earning capacity? (British Columbia, Canada)
Is there any case law that supports the argument that past loss of earning capacity affects future earning capacity? (British Columbia, Canada)
How is the calculation of loss of future earning capacity calculated? (British Columbia, Canada)
Is there a loss of earning capacity when there is no reduction in income earning capacity? (British Columbia, Canada)
