Legal Definitions - future earnings

Future earnings refers to the income an individual was reasonably expected to earn over a future period, which they are now unable to acquire due to a specific event or legal wrong. This concept is particularly important in legal cases, such as personal injury, wrongful death, or breach of contract, where it forms a significant part of the financial compensation (damages) awarded to the injured party or their survivors. Calculating future earnings often involves considering factors like the individual's age, occupation, education, work history, potential for career advancement, and life expectancy.

• Example 1: Personal Injury

  A highly skilled surgeon suffers a debilitating hand injury in a car accident caused by a negligent driver. The injury permanently prevents them from performing complex surgeries, effectively ending their career as an operating surgeon. While they might be able to take on a consulting role, their earning potential is significantly reduced.

  In this scenario, the surgeon's "future earnings" would represent the substantial income they were projected to earn from their surgical practice over their remaining working life, which is now lost due to the accident. A legal claim would seek to recover this lost income.

• Example 2: Wrongful Death

  A 40-year-old architect, who was the primary financial provider for their spouse and three young children, dies in a construction site accident caused by a safety violation. The architect had a strong career trajectory and was expected to continue earning a high income for many years.

  In a wrongful death lawsuit, the surviving family members would seek compensation for the "future earnings" the architect would have contributed to the household over their expected working life. This financial loss, representing the income the family will no longer receive, is a key component of the damages.

• Example 3: Breach of Employment Contract

  A senior marketing executive had a three-year employment contract with a technology company, guaranteeing a substantial salary and performance bonuses. After one year, the company wrongfully terminates their contract without cause. Although the executive eventually finds another job, it is at a lower salary and without comparable bonus potential for the remaining two years of the original contract.

  The executive could sue the former company for the "future earnings" they would have received under the original contract for those remaining two years. This would typically be the difference between what they were guaranteed in their original contract and what they are now earning, representing the financial loss directly attributable to the wrongful termination.