Personal injury cases arise when an individual is injured as a result of another person’s negligence. In these cases, the victim may receive compensation for various damages, including medical expenses, lost wages, and pain and suffering. However, one type of damage that is often overlooked is future lost earning capacity. In this article, we will discuss what future lost earning capacity is and whether or not you can receive compensation for it in a personal injury case.
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What is Future Lost Earning Capacity?
Future lost earning capacity refers to the ability of an individual to earn money in the future that is lost due to a personal injury. This can occur when the injury prevents the individual from returning to their job, causes them to retire early, or limits their ability to work in the same capacity as before the injury. Future lost earning capacity can also include lost opportunities for career advancement, promotions, or raises.
For example, if a person was injured in a car accident and suffered a spinal cord injury that prevents them from returning to their previous job as a construction worker, their future lost earning capacity would be the amount of money they would have earned as a construction worker for the rest of their working life.
Factors that Affect Future Lost Earning Capacity
Several factors can impact future lost earning capacity, including:
Age
The younger the victim, the greater the impact on their future earning potential. This is because younger individuals have more time to accumulate wealth and advance in their careers.
Education and Training
Individuals with higher levels of education and training often have higher earning potential. A personal injury that prevents an individual from using their specialized skills and education can significantly impact their future earning capacity.
Job Market
The job market and economic conditions can affect an individual’s future earning potential. For example, if the job market is weak and there are few job opportunities, an individual’s ability to find a new job and earn the same salary may be limited.
Severity of the Injury
The severity of the injury and the impact it has on the victim’s ability to work can significantly affect their future earning capacity. An injury that prevents an individual from working in their chosen field or limits their ability to work at all will have a greater impact on their future earning potential.
Can I Receive Compensation for Future Lost Earning Capacity?
Yes, you can receive compensation for future lost earning capacity in a personal injury case. However, calculating the amount of compensation can be complicated. It requires taking into account several factors, including the victim’s age, education, job market conditions, and severity of the injury.
To determine the amount of compensation for future lost earning capacity, expert testimony may be required. An economic expert can assess the individual’s current and potential future earning capacity based on their age, education, work history, and the impact of the injury on their ability to work. The expert can also factor in inflation and the present value of future earnings to arrive at an accurate calculation of the compensation owed.
Conclusion
Future lost earning capacity is often overlooked in personal injury cases, but it can have a significant impact on a victim’s financial wellbeing. If you have been injured due to someone else’s negligence and are unable to work or have limited earning capacity as a result, you may be entitled to compensation for future lost earning capacity. An experienced personal injury attorney can help you understand your legal rights and options and work to secure the compensation you deserve.