Restitutio in integrum is the principle of restoration of an injured claimant to their pre-accident situation, insofar as their losses can be compensated by monetary awards. One particular class of pecuniary loss awards is prospective loss of earnings, also referred to as future income replacement benefits. It seeks to compensate plaintiffs for the income that they would have earned but for the injuries they sustained as a result of their motor vehicle accidents.
For adult claimants, loss of future income can be simply estimated by comparing the adult’s profession with an actuarial table and adjusting for contingencies such as unemployment and illnesses as well as inflation and taxes. For children who have yet to choose a profession or show aptitude in school, however, the calculation is much more complicated.
The Case
Over the years, Canadian courts have taken a varied approach to calculating the expected future income of children. In 1978, the Supreme Court of Canada in Arnold v Teno estimated a four-year-old girl’s future income by taking the middle number between her mother’s salary and the poverty line, then deducting a 20% contingency to arrive at a number close to the poverty line in that time period.[1] In 1993, the British Columbia Court of Appeal in Tucker v. Asleson estimated an eight-year-old girl’s future income by beginning with a university educated male’s median income and adjusting downwards by 60%, accounting for the gender pay inequality between men and women in that time period.[2] Most recently in 2001, the Alberta Court of Appeal in MacCabe v Westlock Roman Catholic Separate School District No. 110 estimated a sixteen-year-old girl’s future income by using male statistics for the profession that she planned on working in.[3]
[1] Arnold v Teno, 1978 SCR 287.
[2] Tucker v Asleson,1993 CarswellBC 94.
[3] MacCabe v Westlock Roman Catholic Separate School District No. 110, 2001 ABCA 257.
The methods to calculate loss of future income for children are not uniform. Although there is presumably a trend towards closing the gender income disparity in estimated future income, there is no definitive “right” way. Depending on the method used, a child’s estimated damage award with respect to their future loss of income can vary greatly. Since each child plaintiff must be assessed on a case-by-case basis, you require the assistance of an experienced personal injury lawyer to help you negotiate the benefits you and your children deserve.
