First Principles of Business Law

Remedies in tort

3. Compensatory damages for personal injury

3.1.a.3. Calculating loss of earning capacity

 

 

 

Click here to review the facts of the example on tthe previous page.

On these facts, an initial figure for damages might be arrived at along these lines:

  • After-tax income at present salary x 25 years.................................750,000
  • Additional income through retraining and promotion.....................250,000

TOTAL: $1,000,000

However, other things also need to be taken into account. Click on the factors listed below to see whether or not a court is likely to treat them as relevant in calculating loss of earnings.

 

 

 

 

 

 

 

 

 

 

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