LOST EARNING CAPACITY

LOST EARNING CAPACITY

lost earning capacity. A person’s diminished earning power resulting from an injury. ? This impairment is recoverable as an element of damages in a tort action. Cf. lost earnings under EARNINGS. [Cases: Damages 38. C.J.S. Damages ¡ì 56.]

¡°To some extent the phrases ¡®loss of earnings’ and ¡®loss of earning capacity¡¯ are used interchangeably. But the preferred view is that they are different concepts. The former covers real loss which can be proved at the trial; the latter covers loss of the chances of getting equivalent work in the future.¡± R.F.V. Heuston, Salmond on the Law of Torts 572 (17th ed. 1977).


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