What is the legal test for using an earnings approach?

British Columbia, Canada


The following excerpt is from Dinnissen v Lee, 2019 BCSC 1729 (CanLII):

As a check on the validity of the earnings approach, I also considered the capital asset approach. Our Court of Appeal has confirmed that it is not an error to do so: Johal v. Meyede, 2014 BCCA 509, para. 37.

Justice Finch, as he then was, in Brown v. Golaiy, 1985 CanLII 149 (cited with approval in Perren), set forth four key factors under the capital asset approach. The four factors are: 1. The plaintiff has been rendered less capable overall from earning income from all types of employment; 2. The plaintiff is less marketable or attractive as an employee to potential employers; 3. The plaintiff has lost the ability to take advantage of all job opportunities which might otherwise have been open to him or her, had he or she not been injured; and 4. The plaintiff is less valuable to himself or herself as a person capable of earning income in a competitive labour market.

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