In what circumstances will a plaintiff be able to claim damages for loss of earnings capacity?

California, United States of America


The following excerpt is from Rodriguez v. McDonnel Douglas Corp., 151 Cal.Rptr. 399, 87 Cal.App.3d 626 (Cal. App. 1978):

A second context revolves around the fact that the average uninjured and employed citizen must regularly yield a portion of his earnings to his government; he receives, in a truly realistic sense, a net rather than a gross income. It is in this area of computation of damages that some jurisdictions have permitted the defendant to introduce evidence of income taxation to affect the amount of the award of damages. Overruling established precedent, England changed its rule of law to allow evidence of estimated net future earnings rather than gross estimated earnings as the measure of earning capacity loss in British Transport Commission v. Gourley (1956) A.C. 185.

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