The justices ruled 7-0 against obstetrician William G. Johnston in an appeal on behalf of the child, Cassidy Ediger.
A trial judge awarded the Ediger family $3.2 million after determining the doctor failed to ensure that back-up surgical staff would be immediately available to deliver the baby by Caesarean section if a forceps procedure failed.
The British Columbia Court of Appeal overturned the ruling in favour of the doctor, but the Supreme Court has now reversed that decision.
Cross-appeals about the amount of damages were referred back to the B.C. appeal court for consideration.
Cassidy, now 15, is fed through a tube and confined to a wheelchair, unable to speak, and has a life expectancy of just 38 years.
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