What is the test for a plaintiff to claim damages for loss of earning capacity?

British Columbia, Canada


The following excerpt is from Reitsema v Lammers, 2017 BCSC 1374 (CanLII):

In order to receive an award for loss of earning capacity, a plaintiff must prove a real and substantial possibility that his or her earning capacity has been impaired: Perren v. Lalari, 2010 BCCA 140 at paras. 30‑32 [Perren]. If the plaintiff has discharged the burden of proof, then the judge must turn to an assessment of damages. The assessment may be based on an earnings approach or a capital asset approach: Perren at para. 32. An earnings approach is most appropriate where the loss is more easily quantifiable. In general, a party may be forced to default to a capital asset approach where the loss is not easily quantifiable.

Using the capital asset approach does not mean the assessment is unstructured. I agree with Garson J.A.’s observations in Morgan v. Galbraith, 2013 BCCA 305:

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