Also known as: net earnings capacity · earning capacity
Written by attorneys · grounded in primary & secondary sources — see below
The net income a person is capable of generating after taxes and expenses. Courts award compensation for its loss or impairment only upon proof of actual pecuniary harm.
Lina Gems suffered flooded display cases and inventory after a pipe burst in her mall space. She presented invoices showing the value of ruined fixtures and sales records documenting reduced profits during the closure. The court awarded damages for harm to earning capacity because Lina proved the pecuniary amounts with reasonable certainty.
Carlos crushed his hand on a defective press at IronForge Corp. He introduced medical records and vocational expert testimony showing he could no longer perform assembly line work. The jury awarded damages for impairment of earning capacity after finding the evidence established the reduction in his net income potential.
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Nathaniel Newman died from injuries sustained on a job site. His estate sought damages for lost future earnings. Recovery was limited to the net earning capacity he actually lost before death because the statute cut off post-death projections.
Nina Nielsen performed unpaid domestic and business services for her long-term partner over decades. She claimed the contributions increased the partner's net earning capacity. The court considered whether those services supported a claim for compensation measured by the resulting increase in earning power.
Noreen Nguyen obtained an advanced degree during marriage while her spouse supported the household. The court refused to treat the degree itself as marital property but examined whether it enhanced her net earning capacity for purposes of equitable distribution.
Yes. Compensatory damages for harm to earning capacity require proof of actual pecuniary loss with reasonable certainty. Evidence such as invoices, sales records, or vocational testimony must establish both the existence and amount of the loss.
Yes. Management testimony alone that losses likely occurred is insufficient. Concrete financial data such as cancelled contracts, profit records, or expert calculations are needed to support recovery.
Recovery is limited to harms suffered before death. Post-death projections of future earning capacity are not recoverable under survival statutes.
Yes. Courts assess a parent's net earning capacity when setting support obligations, using tax returns and expense evidence to determine the realistic monthly income available.
…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…