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

Lost earning capacity is an important element of a catastrophic injury case in Washington. It is used to help determine the amount of compensation an injured party will receive. Lost earning capacity is calculated by estimating the amount of money the injured party would have earned throughout their life, had the injury not occurred. The calculation takes into account the injured party’s occupation, as well as their current age, estimated future wages, life expectancy, and the likelihood of future promotions or raises. In some cases, the injured party’s estimated future wages may be based on historical wage data for their field of work. In other cases, an expert witness is used to provide an estimate. This expert will consider the injured party’s pre-injury educational attainment, relevant job experience, and the market demand for their skills. The court will also use additional calculations to determine the total amount of compensation, including the cost of any medical care and expenses, the cost of any necessary home modifications, and any lost wages or benefits. In the end, the court will use all of the information to create a fair, accurate, and reasonable compensation package that helps the injured party maintain their standard of living. Ultimately, the amount of compensation will depend on the severity of the injury and the injured party’s expected future economic loss.

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

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