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Loss Of Future Earning Capacity

When someone’s negligent or reckless conduct causes significant injury to another person, they sometimes require financial assistance. According to Texas law, people harmed by carelessness have the right to seek compensation for medical expenses, lost wages, and other non-economic losses. In the long run, those who have suffered severe, lifetime-altering injuries may require additional assistance. A loss of earning capacity is one form of compensation that can help those who will never fully recover.

Today, Texas Personal Injury Lawyers offers an overview of the factors that go into a loss of earning capacity, how these losses are calculated, and what evidence you might provide to back up your claim. Learn whether reduced earning capacity may assist you in the future.

Texas Personal Injury Lawyers assist accident victims. Call now to book a free, no-obligation consultation with one of our licensed and experienced lawyers. We are ready to assist you.

What Is Loss Of Earning Capacity?

People frequently confuse lost earning capacity with missed payments. Missed money is the loss of income an injured person would have earned while recuperating but unable to work.

Loss of earning capacity is the inability to work due to a disability. Victims may seek loss of earning capacity compensation if their injuries, whether physical, mental or both, prevent them from working in the future and they lose some or all of their ability to generate income.

What Are The Criteria For Determining A Loss Of Earning Capacity?


To assess the importance of a victim’s lost earning capacity, you must first consider numerous variables. After that, you must calculate a realistic estimate of someone’s future earning power.

The value of these losses is difficult to determine. In order to properly assess and demonstrate a victim’s lost earning capacity, an attorney may need to consider numerous variables, such as:

  • Life expectancy, based on age and pre-accident health
  • Number of years likely to have been able to work
  • Current work experience and projected career path 
  • Number of promotions already achieved 
  • Pre-accident earnings
  • Existing skills, education, or other special training obtained
  • The assessed value of a victim’s field and skills in the marketplace
  • Potential for job promotions and future salary raises
  • Ability to do various aspects of his or her current job

Wage Loss, Earning Capacity, And Projecting Damages


Wage loss damages are comparable to, but not synonymous with, lost future earnings capacity losses. Loss of earning capacity damages evaluate the difference in one’s wages over time compared to one’s usual rate of pay (i.e., days off due to injury). In certain circumstances, if the plaintiff is so severely disabled that they are unable to work at all, the loss of income capacity will be equivalent to one’s lost earnings until retirement.

Loss of earning capacity damages need estimates on both a long- and short-term basis, with one timeline accounting for the time before you were hurt and the current period. You may (to a degree) do so by comparing them. You’ll have to project what you could make in a lifetime if you were guaranteed salary raises, promotions, and bonuses at regular intervals. In the “no injury” timeline, there is a tendency to be overly optimistic with respect to earnings and under pessimism in the “current” timeline, therefore it’s important to make sure the estimates are rational rather than excessive.

Using Expert Testimony To Strengthen The Claim


There is a lot of uncertainty in estimating future earnings potential, and as such, it’s unlikely you’ll be able to recoup the money you’re looking for unless you work with specialists who can offer corroborating evidence that bolsters your claims.

Assume you’re in a vehicle accident and suffer serious back and spinal injuries. You previously worked from your computer as an IT specialist. The severe back problems prevent you from sitting or standing for more than an hour or two at a time, though.

Making an income loss claim now seems to be straightforward, given that you are unable to fulfill the primary responsibilities of your profession, but making a loss of earning capacity claim is a lot more complicated. You will have to prove that the back problems prevent you from doing alternative work of equal or greater pay, thus your long-term earnings potential is jeopardized.

There will be expert testimony that backs up your position. The vocational specialist will be able to testify about the job possibilities open to you based on your prior education and training, as well as their earning potential. You can describe your condition and the limitations thereof in detail using a narrative. You may use a narrative to tell your story in conjunction with the assistance of a healthcare professional (who will testify as to the severity of your disability).

Proving Reduced Earning Capacity


In addition to the aforementioned variables, an attorney may request the testimony of a forensic accountant, such as a financial expert, to present evidence of your losses. Having an expert testify in your favor can lend tremendous weight to your claim. Experts with specialized knowledge or training are regarded as unbiased, which is why their testimony may be given more weight by a jury.

What If The Victim Was Self-Employed?


It may be tough, but not impossible, for a plaintiff who is self-employed to produce evidence proving a loss of earning capacity. The following are some examples:

  • The ability of the victim to participate in the company as opposed to before the accident
  • The size and influence of the company
  • Lost profits the business has had since the victim was injured
  • Tax records to show evidence of prior years’ earnings

Making Less After An Injury That Was Not Your Fault? 

Call Texas Personal Injury Lawyers Today

If you have been injured and are prevented from earning a living, our firm may be able to assist you. It is critical that you contact an expert attorney right now to safeguard your rights. Insurance companies do all they can to pay as little as possible on a claim. One misstep, however innocent, could seriously damage the value of your claim.

At Texas Personal Injury Lawyers, we have the knowledge, experience, and tools to develop a strong claim and fight for the best possible settlement. Call now to get started. There is no cost at all to obtain a consultation with us; you can learn about your legal choices without any risk. There is no obligation to employ our services. If we do represent you, there is nothing to pay upfront or while we work on your case. We are only paid when you are successful and only if we win.

Call us at (888) 997-2148 now for you free consultation.

We take cases on a contingency fee basis and there are no costs unless we win, and the consultation is completely FREE. Contact us to learn what Texas Personal Injury Lawyers can accomplish for you.