What is the test for assessing loss of capacity?

The principles for assessment of loss of capacity are set out in Perren v. Lalari, 2010 BCCA 140 and Graydon v. Harris, 2014 BCCA 412. Entitlement to an award for loss of future earning capacity is a two-step process: 1. The plaintiff must always prove that there is a real and substantial possibility of a future event leading to an income loss. 2. If the first step is met, then, the court must assess the loss. This is generally done either by an earnings approach or a capital asset approach.

In Davidge v. Fairholm, 2014 BCSC 1948 at para. 166, various factors were discussed as supporting a conclusion of a real and substantial possibility of a future loss on the part of a young plaintiff which included: 1. The plaintiff had a relatively high level of chronic pain; 2. The plaintiff’s job required a great deal of concentration; 3. The plaintiff’s job put physical stresses on his body; 4. The plaintiff had physical limitations preventing him from performing even more physically demanding tasks than those he performs in his present job; 5. As a matter of ordinary human experience and common sense, a person’s ability to tolerate chronic pain diminishes with age.