Also known as: earning capacities
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An element of compensatory damages representing pecuniary loss from harm to a person's ability to earn money. Recovery requires proof of the existence and amount of the loss with reasonable certainty. The death of the injured person limits recovery to harms suffered before death.
An element of compensatory damages representing pecuniary loss from harm to a person's ability to earn money. Recovery requires proof of the existence and amount of the loss with reasonable certainty. The death of the injured person limits recovery to harms suffered before death.
Select any source to read its text and confirm it supports the definition.
Recovery for loss of earning capacity during marriage that is received after the determination date must be treated as marital property in dissolution.
Select any source to read its text and confirm it supports the definition.
Recovery for loss of earning capacity during marriage that is received after the determination date must be treated as marital property in dissolution.
Each sense below has its own examples, sources, and questions.
Lina Gems leased space from Arco Properties. A burst pipe destroyed display cases and inventory and forced the store to close during peak weeks. Lina proved the value of the ruined goods with invoices and the amount of lost profits with sales records. The court awarded compensatory damages for harm to property and harm to earning capacity.
Marvin worked as a construction foreman. A bellhop's negligence caused a hip fracture that eliminated his ability to perform physical work. Marvin accepted a lower-paying consulting role. A jury could award damages for the impairment of earning capacity shown by the change in his physical abilities.
Carlos suffered a crushed hand at work that reduced his earning capacity. He died from unrelated causes before trial. His estate may recover only for the impairment of earning capacity that occurred before his death.
Yes. Compensatory damages for harm to earning capacity require proof of pecuniary loss both as to existence and amount. Courts reject recovery when the plaintiff offers only general testimony without financial records or other concrete evidence.
Supporting sources
Yes. Under survival statutes the death of the injured person limits recovery for loss or impairment of earning capacity to harms suffered before death.
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During marriage one spouse obtained an advanced degree while the other provided financial support. Upon divorce the court refused to treat the degree or the resulting increase in earning capacity as divisible marital property.
A couple lived together for decades under an oral agreement that one partner would handle business affairs and support the other according to his earning capacity. After separation the court considered whether the agreement created enforceable property rights based on the claimed earning capacity.
Yes. In family-law support proceedings courts may impute income at the level of a parent's demonstrated earning capacity when the parent is voluntarily unemployed or underemployed.
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No. Courts have held that a degree or the earning capacity it produces is not property subject to equitable distribution upon divorce.
Supporting sources
It may. In states that recognize such claims the agreement can support a cause of action for division of assets based on the partner's earning capacity and contributions.
Supporting sources
…Orthodontic Specialists. In this position, she was paid $15,000 to $16,000 per year. The circuit court found Tracy has a current earning capacity of $14.50 per hour, or $30,160 annually. B. Procedural History ¶ 12. On May 16, 2007, Tracy filed a petition for divorce in Sauk County Circuit Court. Upon entering the order of…