What is Loss of Earning Capacity?

Wrongful Death Dan - October 2, 2018

Fort Wayne Wrongful Death Attorney

When a family experiences a wrongful death, it is an emotionally devastating experience. Should the person who passed away be the major source of a family’s income, they will experience current as well as future loss of income. This is known as loss of earning capacity.

Loss of Earning Capacity

When compensation for loss of earning capacity is determined during a wrongful death claim, it is divided into two different areas. These areas are the deceased’s previous earning capacity and their future earning capacity. A court will look at what the plaintiff’s ability to earn was as well as how their death impacted what they would have provided economically for their dependents in the future.

Burden Of Proof

When trying to obtain fair compensation for loss of earning capacity caused by an accidental death, the burden of proof will always be on the plaintiffs. They will be required to prove and identify the impairment of earnings as well as the loss of future wages and more. It has to be shown to a jury the loss of a loved one is what caused their economic loss. In addition to providing sufficient documentation, a plaintiff may also provide testimony from expert witnesses to further explain their loss. This can be a complicated process, and a plaintiff can only benefit from having a wrongful death lawyer represent them during these proceedings.

Factors For Employees

The process for determining what amount of damages should be awarded for loss of earning capacity can involve complex calculations. It often includes reviewing the work profile of the person who passed away. This is done to determine their skills, abilities, talents, experience, and more. The current market values of their skills, as well as wage rates, will be identified. This information will be used to determine how much future income a family will lose because of the death of their loved one. Other factors taken into consideration are the accident victim’s health, life expectancy, occupation, the probability for unemployment, and more.

Factors For Self-Employed

When the death of someone who is self-employed occurs, determining the compensation for loss of earning capacity will be different from someone who was a wage earner. This type of claim could involve having an accountant review the profit and loss of the deceased’s company. The size and type of company will be a factor as well as the track record and anticipated economic future of the company’s industry. Other factors examined will be the extent and nature of the deceased’s participation in the company and more.

When a family has experienced the loss of a loved one, they must deal with many different things. They shouldn’t have to worry about being able to survive financially. An experienced wrongful death lawyer from Blackburn & Green will have the sensitivity and understanding to help a family deal with this difficult situation. Blackburn and Green will work hard to obtain the compensation that the law enables the family to receive.

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