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Working More Hours to Earn the Same Money
    Thursday, July 5, 2012

The recently reported decision in the case of Ibbitson v. Cooper 2012 BCCA 249 dealt with a person who was injured in a car accident in B.C. Due to the injuries sustained in the car accident, they were unable to work at the same job as they did before they were injured in the collision.  However, they were able to earn the same amount of money that they did before the motor vehicle accident injuries doing a different job, but working more hours.  The insurance company appealed the award of loss of future earning capacity that the trial judge awarded, claiming that there was no loss of future earning capacity, because the injured person was earning the same amount of money.

The British Columbia Court of Appeal held:

[19]         While in many cases the actual lost income will be the most reliable measure of the value of the loss of capacity to earn income, this is not necessarily so. A hard and fast rule that actual lost income is the only measure would result in the erosion of the distinction made by this Court in Rowe: it is not the actual lost income which is compensable but the lost capacity i.e. the damage to the asset. The measure may vary where the circumstances require; evidence of the value of the loss may take many forms (see Rowe). As was held in Rosvold v. Dunlop, 2001 BCCA 1 at para. 11, 84 B.C.L.R. (3d) 158, the overall fairness and reasonableness of the award must be considered taking into account all the evidence. An award for loss of earning capacity requires the assessment of damages, not calculation according to some mathematical formula.

[20]         In this case, the respondent clearly suffered as a result of the accident; he can no longer perform the job he was engaged in prior to the accident. He has suffered a pecuniary disadvantage as he needs to work longer hours to maintain his approximate pre-accident level of income.

[21]         The trial judge considered pre-trial earnings both before and after the accident, explaining that calculating a precise value for the extra hours was a difficult task, and chose to assess the damages “at large”. Had Mr. Ibbitson worked the same amount of hours post-injury as he had pre-injury, he surely would have been found to have suffered a compensable loss of earning capacity. His entitlement to such damages does not disappear due to his industrious efforts to maintain his level of income, exceeding his legal requirement to mitigate. I agree with the trial judge’s conclusion and analysis.

[22]         I would dismiss the appeal.


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