What is the difference between the earnings approach and the capital asset approach?

British Columbia, Canada


The following excerpt is from Evans v Keill, 2018 BCSC 1651 (CanLII):

The defining distinction between the earnings approach and the capital asset approach is the extent to which the loss is measureable. If there is little or no evidence of what the plaintiff’s post-accident earnings will be, the earnings approach may not be appropriate. Although the earnings approach is more mathematical, both approaches are a matter of judgment, not “mere calculation”: Hosseinzadeh v. Leung, 2014 BCSC 2260 at para. 126.

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