As new grandparents, we are constantly reminded how fast time is flying by. The Scriptures warn us to “Number our days” and remind us there is an “appointed time for everything.”
And in the serious injury cases I handle, “time” is actually one very important factor.
Life expectancy: Did you know that Tennessee State Law has guidelines for how long you might live? Let’s assume Carl, a male, is age 50; he has an estimated 35.46 years left to live. If his injuries provably cause him permanent pain and loss of enjoyment of life, they can be multiplied over that 35 years.
Lost wages: Carl was a roofer, and he earned about $961.54 a week, on average pre-crash. He was out after his accident under doctor’s orders for a full year, until he was released to lighter duty work, and so he lost $50,000.
Lost earning capacity: As with any damages claim, the plaintiff (injured party) has the burden of proving any impairment of earning capacity damages. He must first prove with reasonable certainty that the injury has or will impair his earning capacity. Then, the injured party must introduce evidence concerning the extent of the impairment of his earning capacity.
The extent of an injured person’s loss of earning capacity is generally arrived at by comparing what the person would have been capable of earning, with the amount he is capable of earning after the injury. Example, Carl the roofer was earning $50,000 per year but is no longer allowed to work at heights or carry the heavy shingles, so he now does light interior finish trim carpentry making just $35,000 per year. The difference is $15,000 per year of work life.
If the injury is permanent, this amount should be multiplied by the injured person’s work life expectancy, assuming he worked till his Social Security retirement age of 67, or 12 years or $180,000.
Present value: But then the result must be discounted to its present value, which can assume the growth rate of investments and inflation, which likely puts it around about $150,000 to $155,000 in today’s dollars.
While raising our three kids years ago, I heard a saying I’ve repeated often ever since: “The days are long, but the years are short.”
DAVID PEEL seeks justice for those injured in tractor trailer and car accidents, medical malpractice, and disability. He often addresses churches, clubs and groups without charge. He may be reached through PeelLawFirm.com, where his articles are archived.
