October 17, 2024
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Unlike lost wages, which refer to income lost during recovery, lost earning capacity focuses on the long-term impact of injuries on future earning potential, including changes in career prospects or reduced ability to work. Here’s a comprehensive guide on how to effectively prove lost earning capacity in a personal injury claim.
To establish a baseline for your lost earning capacity, collect records that reflect your income before the injury:
Medical documentation is critical in showing how injuries affect your work ability:
Lost earning capacity claims are speculative, so credible experts can add weight:
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Lost earning capacity is often calculated by comparing projected earnings without the injury to those with the injury over your remaining work-life expectancy:
Loss of Earning Capacity=(Projected Earnings Without Injury−Projected Earnings With Injury)×Work-Life Expectancy\text{Loss of Earning Capacity} = (\text{Projected Earnings Without Injury} - \text{Projected Earnings With Injury}) \times \text{Work-Life Expectancy}Loss of Earning Capacity=(Projected Earnings Without Injury−Projected Earnings With Injury)×Work-Life Expectancy
For example, if your pre-injury income was $80,000 annually but is expected to be $50,000 due to injury limitations, with a 30-year work-life expectancy, the calculation would be:
Loss of Earning Capacity=(80,000−50,000)×30=900,000\text{Loss of Earning Capacity} = (80,000 - 50,000) \times 30 = 900,000Loss of Earning Capacity=(80,000−50,000)×30=900,000
Injuries may prevent access to previous career paths or promotions. To document these changes:
If your case proceeds to trial, organize your evidence clearly, covering:
Proving lost earning capacity requires comprehensive documentation and expert insights to substantiate future income loss claims. By compiling evidence of pre-injury earnings, medical assessments, and engaging economic and vocational experts, you can build a strong case for compensation. Consulting an experienced personal injury attorney can help navigate this process, increasing the likelihood of obtaining fair compensation.
