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BC Loss of Future Earning Capacity

Loss of Future Earning Capacity

In today’s blog Spencer MacLean  BC Loss of Future Earning Capacity lawyer would like to further explore  personal injury damages arising from a “BC Loss of Future Earning Capacity” as discussed in our October 12, 2016 blog post. BC Loss of Future Earning Capacity cases  are complex and the money settlements for BC Loss of Future Earning Capacity can easily be in the hundreds of thousands of dollars for a young victim on a the fast track to a well paying career and can also lead to substantial damage awards for young victims who haven’t yet started their careers.

BC Loss of Future Earning Capacity

BC Loss of Future Earning Capacity

BC Loss of Future Earning Capacity 1-877-602-9900

If you have been injured in a BC motor vehicle accident and are negotiating your BC  Loss of Future Earning Capacity injury settlement with ICBC set up a free consultation with a lawyer at MacLean Law’s Personal Injury Department. We are happy to meet you at any of our five office locations across BC including  Vancouver, Surrey, Richmond, Kelowna and Fort St. John. to discuss your BC Loss of Future Earning Capacity, economic loss and pain and suffering claim. We meet with you for free, get paid when you do and can explain why studies show awards being higher for injured victims that hire experienced injury lawyers.

BC Loss of Future Earning Capacity Case Explains Test

Ilett v. Buckley, 2016 BCSC 1407 is a recent decision from the Supreme Court of British Columbia which provides an excellent overview of what the court looks for to determine Loss of Future Earning Capacity as explained below:

[219]     The law with respect to loss of earning capacity was summarized by Mr. Justice MacKenzie in Stull v. Cunnningham2013 BCSC 1140 (CanLII), as follows:

[131]  In Wong v. Hemmings, 2012 BCSC 907 (CanLII), at paras. 146-151, Fitch J. summarized the legal principles pertaining to this head of damages:

[146]  A claim for loss of future earning capacity raises two key questions: 1) has the plaintiff’s earning capacity been impaired by his or her injuries; and, if so 2) what compensation should be awarded for the resulting financial harm that will accrue over time? The appropriate means of assessment will vary from case to case: Brown v. Golaiy (1985), 1985 CanLII 149 (BC SC), 26 B.C.L.R. (3d) 353 (S.C.); Pallos v. Insurance Corp. of British Columbia (1995), 1995 CanLII 2871 (BC CA), 100 B.C.L.R. (2d) 260 (C.A.); Pett v. Pett, 2009 BCCA 232 (CanLII).

[147]  The assessment of damages is a matter of judgment, not calculation: Rosvold v. Dunlop, 2001 BCCA 1 (CanLII)at para. 18.

[148]  Insofar as possible, the plaintiff should be put in the position he or she would have been in but for the injuries caused by the defendant’s negligence: Lines v. W & D Logging Co. Ltd., 2009 BCCA 106 (CanLII) at para. 185. The essential task of the Court is to compare the likely future of the plaintiff’s working life if the accident had not happened with the plaintiff’s likely future working life after the accident: Gregory v. Insurance Corp. of British Columbia, 2011 BCCA 144 (CanLII) at para. 32.

[149]  There are two possible approaches to assessing of loss of future earning capacity: the “earnings approach” fromPallos; and the “capital asset approach” in Brown. Both approaches are acceptable. Reliance on the capital asset approach will be more useful where, as in this case, the loss in question is not easily measureable: Perren v. Lalari,2010 BCCA 140 (CanLII).

[150]  The earnings approach involves a form of math-oriented methodology such as: (i) postulating a minimum annual income loss for the plaintiff’s remaining years of work, multiplying the annual projected loss by the number of remaining years and calculating a present value; or (ii) awarding the plaintiff’s entire annual income for a year or two:Pallos; Gilbert v. Bottle, 2011 BCSC 1389 (CanLII) at para. 233.

[151]  The capital asset approach involves considering factors such as: i) whether the plaintiff has been rendered less capable overall of earning income from all types of employment; ii) is less marketable or attractive as a potential employee; iii) has lost the ability to take advantage of all job opportunities that might otherwise have been open; and iv) is less valuable to herself as a person capable of earning income in a competitive labour market: Brown; Gilbert at para. 233.

[132]  In Andrews v. Grand & Toy Alberta Ltd., 1978 CanLII 1 (SCC), [1978] 2 S.C.R. 229 at 251, the Court said:

We must now gaze more deeply into the crystal ball. What sort of a career would the accident victim have had? What were his prospects and potential prior to the accident? It is not loss of earnings but, rather, loss of earning capacity for which compensation must be made: The Queen v. Jennings, 1966 CanLII 11 (SCC), [1966] S.C.R. 532, supra. A capital asset has been lost: what was its value?

[133]  In Reilly v. Lynn, 2003 BCCA 49 (CanLII) at para. 101, the court stated:

The standard of proof in relation to future events is simple probability, not the balance of probabilities, and hypothetical events are to be given weight according to their relative likelihood: Athey v. Leonati, 1996 CanLII 183 (SCC), [1996] 3 S.C.R. 458 at para. 27. A plaintiff is entitled to compensation for real and substantial possibilities of loss, which are to be quantified by estimating the chance of the loss occurring: Athey v. Leonati. supra, at para. 27, Steenblok v. Funk(1990), 46 B.C.L.R. (2d) 133 at 135 (C.A.).

[134]  The court in Bhadlawala v. Baxter, 2012 BCSC 366 (CanLII), at para. 138, stated:

The assessment of loss of future earning capacity is not a mathematical exercise, and must deal to some extent with the unknowable. As Huddart J.A. put it in Rosvold v. Dunlop, 2001 BCCA 1 (CanLII) at para. 9, ‘[p]ossibilities and probabilities, chances, opportunities, and risks must all be considered, so long as they are a real and substantial possibility and not mere speculation’.”

[220]     The threshold question is whether Mr. Ilett has proven a real and substantial possibility of a future event leading to an income loss. Mr. Ilett argued that he has proven that, and Ms. Buckley argued that he has not.

In the end, the Court awarded the Plaintiff $225,000 for his loss of future earning capacity. However the Honourable Madam Justice Gray stated:

[244]     The award cannot be a precise calculation. It is an assessment made after considering the relevant factors.

If you or anyone you know has been in a motor vehicle accident and would like discuss compensation for your injuries please call us today at one of our five office locations at 1-877-602-9900

BC Loss of Future Earning Capacity

Spencer MacLean BC Loss of Future Earning Capacity in Vancouver 604 697 2804

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