• Feb
    Posted in:
    Posted by: Jarve Kaplan Granato Starr

    How is Future Earning Capacity Calculated for Legal Damages?

    Future Earning Capacity

    When you’ve been in a car accident that’s only a fender bender, you give thanks that nobody was hurt and try to figure out whose auto insurance is going to pay for the bodywork. But if your car crash was more serious and there has been a significant injury to you or a passenger in your vehicle, things get a lot more serious quickly. The smartest thing you can do for yourself is to seek legal guidance from an experienced personal injury attorney who will help you pursue a claim for economic damages such as medical expenses or lost wages. In the event of a car crash that leads to serious disability or even death, there are other damages that need to be calculated including future earnings capacity.

    Future earnings capacity is a term that is used when a car crash results in a victim being affected in a way that permanently restricts their ability to earn income. It is the calculation of how much money the person would have earned had the accident not occurred. How this calculation is made depends upon the specific circumstances of the situation.  If the person who has been impacted was already earning an income prior to the car crash, the calculation will be based upon the amount of money they had been earning, and then projected forwards based on how long it is assumed that they would have worked and how much their wages may have gone up with more experience and tenure. However, the ability to be compensated for future earnings capacity does not depend upon the victim having previously earned money. It is a calculation that can be made for a child or for somebody who was unemployed. The calculation rests upon how much the person would have been able to earn rather than how much they actually did.

    If a person is injured in a way that disables them partially, they can still file for compensation of lost earnings capacity. That claim would be calculated based upon how much they are now able to earn versus how much they would have been able to earn, or on the difference in their potential.

    Careful calculation of lost future earnings can be a compelling argument to make to a jury, who will generally be able to understand that when a car crash occurs and causes disability, it will affect the person for the rest of their life in a way that requires compensation for the years remaining to them. An experienced attorney will help you calculate all of the damages you’ve suffered in a car crash and get you the reimbursement you need to provide for your quality of life now and in the future. Contact us today.

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