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

Lost earning capacity is an important concept in catastrophic injury cases in Florida. When someone suffers a catastrophic injury, such as a debilitating spinal cord injury, they may no longer be able to work and earn money as they did before the injury. To calculate lost earning capacity, a financial expert will examine the individual’s earnings history, education level, and skill set, to determine the amount of money the individual would have been able to earn in the future, had they not been injured. The financial expert will consider factors such as the individual’s age, current and future earning potential, inflation rate, and the number of years the individual would have worked if they had not been injured. The financial expert will also look at the job market to see what similar people will be earning in the future and factor that in to their calculations. The financial expert will then use this information to calculate the difference between the individual’s current earning capacity and their potential future earnings, before the injury. This difference is the individual’s lost earning capacity. This figure is then used to calculate financial compensation in the catastrophic injury case.

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

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