The appellant insurer appealed a trial decision awarding the respondent insured a substantial loss of earning capacity benefit (LECB) and interest on overdue payments.
The respondent, a university student who suffered cognitive deficits and depression following a motor vehicle accident, cross-appealed the trial judge's decision to lock in her pre-accident earning capacity.
The Court of Appeal dismissed the insurer's appeal, finding the trial judge correctly concluded the respondent's residual earning capacity was zero due to her psychological makeup, and correctly awarded interest from the date benefits were overdue.
The Court allowed the cross-appeal, holding that the pre-accident earning capacity must be adjusted as the insured ages pursuant to the statutory formula.
