What is the test for cancelling arrears in a personal injury case?
British Columbia, Canada
The following excerpt is from K.K.S. v J.S.S, 2019 BCSC 136 (CanLII):
To cancel arrears there must be both a significant and long-lasting change in circumstances and it must be grossly unfair to not cancel the arrears; generally, arrears will only be cancelled if the applicant shows they are unable to pay now and in the future: Earle v. Earle, 1999 BCSC 283 at para. 23; Semancik v. Saunders, 2011 BCCA 264 at para. 25.
In Beavis v. Beavis, 2014 BCSC 422 at paras. 13 and 15, Madam Justice Fenlon set out four factors for consideration: a) gross unfairness; b) change in circumstances; c) financial disclosure; and d) the obligation to earn to capacity.
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