How is lost earning capacity calculated in a catastrophic injury case?

In Delaware, lost earning capacity is calculated in a catastrophic injury case based on the wages the injured individual was earning prior to the injury and the wages they are projected to earn after the injury. This includes any lost wages due to missed work and any future wages that will be lost because of the injury. The calculation of lost earning capacity takes into account the victim’s age, pre-injury occupation, education, special skills, work experience, and physical and mental condition as well as the potential for re-employment in the same or similar field. The method also uses the average wage for a person of similar age and ability in the relevant region. In order to determine the amount of lost wages, an economist may be consulted. The economist will review the victim’s work history and project what their earnings would have been if the injury had never occurred. The economist will then compare these earnings to the victim’s current income and any disability income that may be available. Finally, the victim’s medical expenses will also be taken into consideration. The total of estimated lost wages, medical expenses and other damages can then be used to determine the amount of compensation to be awarded to the victim of the catastrophic injury.

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