What is the test for assessing loss of future income earning capacity for a plaintiff?

To establish a claim for future loss of income earning capacity, a plaintiff must first prove a real and substantial possibility of a future event leading to a loss of income, as opposed to a speculative loss: Perren v. Lalari, 2010 BCCA 140 at para. 32. There are two approaches to the assessment of loss of future earning capacity: the “earnings approach” and the “capital asset approach.” The capital asset approach is better suited to cases where the loss is not easily measurable: Perren at para. 12. Due to the fact that the plaintiff had no recent history of paid employment, and had future plans to work in areas where she had not been previously employed, the plaintiff’s income loss is not easily measurable. I find that the capital asset approach is appropriate for assessing her loss of future income.

As set out in Brown v. Golaiy (1985), 1985 CanLII 149 (BC SC), 26 B.C.L.R. (3d) 353 at para. 8 (S.C.), under the capital asset approach the trial judge's task is to assess the loss after answering four questions, although the list of questions is not exhaustive, taking into consideration all the relevant factors arising from the evidence. The questions include: 1. whether the plaintiff has been rendered less capable overall from earning income from all types of employment; 2. whether the plaintiff is less marketable or attractive as an employee to potential employers; 3. whether the plaintiff has lost the ability to take advantage of all job opportunities which might otherwise have been open to him, had he not been injured; and 4. whether the plaintiff is less valuable to himself as a person capable of earning income in a competitive labour market.