Calculating income loss and earning capacity claims in personal injury matters comes with its usual struggles in the search for information and the battles with Plaintiff’s counsel over what is reasonable and how these claims should be assessed. Generally, both sides recognise what information is necessary to sort out the dispute. Maybe expert opinion is necessary, maybe not, but ultimately the source documents are easily determined. Such assessments become much more problematic when the Plaintiff is the director/sole employee of a corporation or the corporation itself is seeking compensation for the loss of a key employee. Part of the difficulty is often a lack of understanding of the fundamental issues at play by one or both sides and rather than getting to the heart of the issue, there is an attempt to jam a square block into a round hole because it is familiar and easy.
Though not a step by step guide to handle these claims, this paper attempts to explain the issues at play and what factors should be addressed to determine whether there is merit to a claim or if it is even a legitimate claim being advanced.
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