Legal Definitions - lost earnings

Lost earnings refers to the income, wages, or profits an individual or business would have reasonably expected to receive but did not, typically due to an injury, wrongful act, or other event for which another party is legally responsible. It represents the financial compensation sought for the income that was *not* earned because of the incident.

Here are some examples illustrating lost earnings:

• Example 1: Personal Injury Preventing Work
  A self-employed carpenter suffers a severe back injury in a slip-and-fall accident at a poorly maintained store. The injury prevents them from performing physical labor for six months, during which they cannot take on any new construction projects or complete existing contracts. The income the carpenter would have earned from their carpentry work during those six months, including both project fees and potential new business, represents their lost earnings.

• Example 2: Wrongful Termination
  A senior software engineer is unjustly fired from their position, despite having a multi-year employment contract that was still valid. It takes the engineer eight months to secure a new job with a comparable salary and benefits package. The salary, bonuses, and benefits the engineer would have received during the eight-month period between their wrongful termination and finding new employment are considered their lost earnings.

• Example 3: Business Interruption Due to Property Damage
  A popular local restaurant experiences significant damage to its kitchen equipment and dining area due to a fire caused by a defective appliance. The restaurant is forced to close for two months for repairs and to replace the damaged equipment. The profits the restaurant would have generated from food and beverage sales during those two months of closure, based on its historical performance, constitute its lost earnings.