What is the test for quantifying loss of future earning capacity for a plaintiff?
British Columbia, Canada
The following excerpt is from Sangha v Read, 2019 BCSC 1761 (CanLII):
There are two approaches used to quantify loss of future earning capacity, the earnings approach and the capital asset approach. The earnings approach is used when the earnings pattern of the plaintiff but for the accident is reasonably capable of determination and the extent to which the lifetime earnings, on a present value basis, has been limited is also reasonably capable of determination. The difference between the present value of the lifetime earnings and the diminished lifetime earnings forms the basis for the assessment. Under the capital asset approach the court undertakes a more broad based assessment of the diminishment to the plaintiff’s capital asset. Accordingly, the determining factor as to which approach is appropriate is the extent to which the loss is measureable: Perren v. Lalari, 2010 BCCA 140 at para. 12 and 32.
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