Legal Definitions - loss of use

Loss of Use refers to the inability to utilize something – whether it's personal property, real estate, or a part of one's body – because of an incident caused by another party's actions, an accident, or some other specific event. This concept is often relevant when determining compensation for damages.

The term "loss of use" is commonly applied in two main contexts:

• Property: When applied to property, "loss of use" describes the financial harm suffered when an item or piece of real estate becomes temporarily unavailable due to someone else's fault. The compensation for this type of loss is typically calculated based on the cost of renting a similar substitute item or property for the period it was unusable.

  • Example 1 (Personal Property): A delivery driver negligently backs into a parked car, causing significant damage that requires the car to be in the repair shop for two weeks. During this time, the car owner needs to rent a vehicle to commute to work and run errands.

    Explanation: The car owner experienced a "loss of use" of their personal vehicle. The at-fault driver's insurance would typically cover the cost of the rental car for the two weeks, compensating the owner for the inability to use their own car.

  • Example 2 (Real Property): A burst pipe in an upstairs apartment, due to the landlord's delayed maintenance, causes extensive water damage to the retail store located directly below. The store must close for three weeks while repairs and cleanup are completed.

    Explanation: The retail store suffered a "loss of use" of its commercial premises. The store could seek compensation for the lost profits during the three weeks it was closed, or for the cost of renting a temporary space, as a direct result of being unable to operate in its usual location.

• Body Part (Workers' Compensation): In the context of personal injury, particularly within workers' compensation systems, "loss of use" refers to an individual's total or partial inability to use a specific body part. This can lead to compensation designed to address the impact on their ability to work and earn a living. Some systems have a fixed schedule for certain injuries, while others consider the "industrial loss of use," which evaluates how the functional disability affects a person's actual job duties and earning capacity.

  • Example 3: A construction worker falls from a scaffold and sustains a severe ankle injury that, even after surgery and rehabilitation, leaves them with a permanent limitation in their range of motion and weight-bearing capacity. This prevents them from climbing ladders or standing for long periods, which are essential parts of their job.

    Explanation: This worker has experienced a "loss of use" of their ankle. Under workers' compensation, they might receive benefits based on a schedule for ankle injuries or an "industrial loss of use" assessment, considering how this permanent limitation prevents them from performing their specific construction duties or similar work, thus impacting their earning potential.