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Can My Claim Include Lost Future Earnings Due to Disability?

A car accident can change your life in a second. You may be at your healthiest and best, and suddenly, you find yourself completely unable to do the things you once did so easily before.

If you have been injured and are now disabled due to a car accident, you may find yourself unable to do the tasks, such as working, that you once did. How can you recoup lost income or earnings due to your disability?

We have asked an attorney, Alaina Sullivan, about what you should do. Here is what she had to say:

Lost Income

Lost income is a form of recovery or compensation available to accident victims who are seeking reimbursement for any income that the injured party would have earned but lost the ability to earn due to accident injuries.

Normally, lost income only includes money that the injured party would have earned for the short-term, meaning he or she was out of work temporarily due to being injured from the accident and lost a specific amount of income.

When it comes to disability, loss of earning capacity is the remedy that needs to be sought, but this figure can be more complicated to calculate due to the uncertainty involved.

Loss of Earnings Capacity

When it comes to determining loss of earnings capacity, the party seeking damages must show first that a need for the award exists. Further, he or she needs to show the method with which it can be calculated.

Loss of earnings capacity can be an uncertain award as nothing is ever completely certain when it comes to the future and what could be earned. For instance, the injuries that a car accident victim receives may possibly keep him or her from doing the job he or she once did so well, and that person may want to seek compensation for the fact that he or she will never be able to do that job again.

How can that figure be calculated? It will be up to the injured party to come to that amount, but he or she should expect some pushback from the other side for this calculation.

Duty to Mitigate

In a car accident, even though the party not-at-fault may be injured to the point of disability, he or she still has a duty to mitigate damages. This means that he or she must do whatever possible to reduce the damages received.

While the injured person may not be able to perform the job done prior to the accident, he or she will be expected to find a new job or method of earning comparable income as soon as possible.

Can My Claim Include Lost Future Earnings Due to Disability?

Defenses to Loss of Earnings Capacity

The other party may raise several defenses to protect himself or herself from a request for loss of future earnings. One of the defenses may involve the victim’s duty to mitigate damages.

While the injury may have kept the injured party from doing the job he or she did before the accident, did it affect the ability for him or her to perform any job and earn any income at all?

Calculating Loss of Future Earnings

Many factors play into calculating loss of future earnings, and these factors include:

  • How severe is the injury?
  • Is this injury permanent or will it heal with no effect on the injured person’s future?
  • What type of job does the injured party have? Is it the type of job that demands physical labor or is it more of a desk job?
  • What is the future earning potential at the injured person’s job?
  • What is the injured person’s age and what was the state of his or her physical health prior the accident?
  • What are the earnings growth potential for this specific industry the victim is working in at the time he or she was injured?

All of these factors need to be considered in coming with a figure. Obviously, each situation is different so no one injury affects all injured parties the same. It is a case-by-case scenario, and a personal injury attorney should be able to guide you through the process.

But-For Injury Gross Earnings

One method of proving loss of future earning capacity is the but-for injury method. This method assesses the injured party’s established earnings projections. Expert witnesses will almost always be needed to look at what the injured person earned pre-injury and then project what he or she would have earned in the future.

The argument would then be made that, but for the accident, he or she would have received this income. Therefore, he or she should be compensated for the inability to earn this income due to being injured.

Despite Injury Gross Earnings

This method of calculation figures what the earning of the victim would have been despite the injury received. The earnings he or she would have received pre-injury would then be reduced by that figure. This method is somewhat easier than the but-for injury method above.

Self-Employed Victim

Matters can be complicated when it comes to a self-employed victim due to the uncertain nature of income flow when it comes to someone who owns a business.

Again, expert witnesses will almost always be needed to come in and value the victim’s business, compare it to what the current industry trend is for the area of business and project the value of business based on growth rates as well as profits of the business.

Contact an Attorney Today

If you have been in a car accident and have questions about lost income due to a disability caused by the accident, 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.