A car accident can be devastating. You may walk away with very little damages, or you may find yourself facing something more serious and permanent. If you acquired any type of disability due to brain damage or injury, you may wonder what type of damages you can seek for your injuries.
Your ability to earn future income could be forever changed or prevented. Can you file a claim for future earnings?
We have asked an attorney, Alaina Sullivan, about what you should do. Here is what she had to say:
What Is Lost Earning Capacity?
Lost earning capacity refers to the amount of decrease in a person’s ability to earn income, specifically in the manner he or she earned it prior to the accident. In some situations, it is referred to as future loss of earnings or impairment of earning power.
Unlike loss of income, which looks at the individual’s situation at the moment the accident occurred, loss of earning capacity looks towards the future, at the individual’s ability to continue earning this income on into the future.
For instance, if the injured party was involved in a fairly physical job position, regularly lifting heavy objects, but because of an injury sustained in a car accident, he or she is no longer able to hold that position.
He or she has lost the earning capacity to receive income through this method of employment, and the injured person can sue for damages due to this lost earning capacity.
How It Works
A complex formula is used when calculating lost earning capacity. The insurance company or court will look at the life the injured party had prior to becoming injured. They will look at his or her work situation, including the position he or she had previously, the person’s skills, talents, and abilities.
Expert witnesses will likely need to be brought in to review and assess the extent of the injury involved and how it will affect future performance in the job. The insurance company or court will also review current market figures and wages to determine how much income the injured party would have lost in the future.
It can become quite complicated as no one size fits all when it comes to this formula. It varies depending on the industry involved, as well as the type of position held by the injured party. Further, other issues are considered, such as the injured party’s ability to earn income in another manner, which is discussed below.
Duty to Mitigate
When it comes to damages in a car accident, the injured party does have a duty to mitigate his or her damages, even if he or she was not the cause of the accident. It may seem unfair since the injured person, if he or she was not at-fault, is the one hurt the most, but each party, including those not to blame, need to do what they can to reduce damages involved.
What does this mean when it comes to lost earning capacity? Essentially what it means is that even though the injured party may not be able to perform the job that he or she did before the accident, the person may still be expected to perform at least some comparable job.
This does not mean that the injured party is expected to work the drive-thru at McDonald’s when he or she used to hold a position as foreman for a construction site. It does mean, however, that the injured person cannot refuse to take any other position that may come available.
If a job opportunity does become available to the injured party, and he or she is able to perform the work expected and receive a comparable income, it will not look good on him or her if the person chooses to not take it but still seeks lost earning capacity.
Rather, the calculation could take into account the difference between the two income figures and ask for the difference under lost earning capacity. Each situation is different, however, and a skilled personal injury attorney can best advise you in your specific situation.
Contact an Attorney Today
If you have been in a car accident and acquired brain damage from the accident, you may have questions regarding what type of earnings you can pursue. It is always recommended you contact an attorney today to discuss your case if you do not currently have a lawyer or have any questions.
A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company. To receive the compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
