Background:

• McHatten, 19, was injured in a car accident in February 2014, resulting in chronic back pain, fibromyalgia, anxiety, and depression, impacting her work capability.

Trial Court Decision:

• The trial judge awarded $200,000 for loss of future earning capacity using the capital asset approach but did not adequately explain the reasoning, complicating appellate review.

Appeal Issues:

1. Insufficient Reasons: The trial judge's reasoning for the award was unclear.
2. Future Earnings Comparison: The judge failed to properly compare potential earnings with and without the accident.
3. Negative Contingency: The 30% discount was applied arbitrarily.

Court of Appeal Findings:

• Insufficient Reasons: The trial judge’s reasoning was inadequate.
• Future Earnings Comparison: The judge did not effectively analyze the economic evidence.
• Negative Contingency: The 30% discount lacked sufficient justification.

Decision:

• Appeal Allowed: The Court of Appeal identified errors and reassessed damages.
• Reassessment: Based on expert testimony, the Court increased the award to $450,000, reflecting a 35% reduction in earning capacity and considering appropriate contingencies.

Disposition:

• The Court of Appeal varied the original award to $450,000 for McHatten’s loss of future earning capacity, emphasizing the need for clear judicial reasoning in damage assessments.