What is the legal test for loss of earning capacity in a bar case?
British Columbia, Canada
The following excerpt is from Livsey v. Rukavina, 2009 BCSC 1960 (CanLII):
The principles to be applied in situations such as the case at bar were reviewed by Madam Justice Huddart in the case of Rosvold v. Dunlop, 2001 BCCA 1, where at paragraph the court noted: An award for loss of earning capacity is based on the recognition that a plaintiff’s capacity to earn income is an asset which has been taken away. Where a plaintiff’s permanent injury limits him in his capacity to perform certain activities and consequently impairs his income earning capacity, he is entitled to compensation. What is being compensated is not lost projected future earnings but the loss or impairment of earning capacity as a capital asset. In some cases, projections from past earnings may be a useful factor to consider in valuing the loss but past earnings are not the only factor to consider.
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