Personal Injury Economic Damages
An analysis of what an injury may cost the plaintiff in earnings, earning capacity and household work, based on the case record and reduced to present value.
The analysis
What the analysis can include
Which elements are included depends on the case. Where several apply, they’re calculated separately, so counsel can use the ones the case supports and the jury charge asks about.
- Past lost earningsWages and benefits lost from the date of injury to trial, typically based on tax returns, W-2s and employer records.
- Loss of future earning capacityPre-injury earning capacity compared with what the plaintiff can earn now, over the remaining work life.
- Fringe benefitsWhere applicable, employer health coverage, retirement contributions and other benefits tied to the lost employment.
- Loss of household servicesThe replacement cost of household work the plaintiff can no longer do, in whole or in part.
- Present valueFuture amounts grown at stated rates and discounted to a lump sum, with the reasoning for the rates explained.
Texas specifics
Texas considerations
Lost earnings and taxes
Texas has specific rules for how income taxes are handled when lost earnings are presented to a jury. The analysis is prepared with them in mind.
Paid vs. billed medical costs
In Texas, what was actually paid for medical care can differ from what was billed, which can matter when medical costs are part of the analysis.
Common questions
Personal injury damages, explained
What’s the difference between lost wages and loss of earning capacity?
Lost wages are what the plaintiff actually did not earn, usually up to trial. Loss of earning capacity measures the reduced ability to earn in the future, whether or not the plaintiff was working at the time of the injury.
How are future losses reduced to present value?
Future losses are typically projected at a stated growth rate and discounted back at a stated interest rate. The report explains the rates used and why.
Do you work for plaintiffs and defendants?
Yes. Meridian is available to both and uses the same methodology either way.
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