Also known as: earning capacities
Written by attorneys — see sources below.
2 senses
An element of compensatory damages representing pecuniary loss from harm to a person's ability to earn money. Recovery requires proof of the existence and amount of the loss with reasonable certainty. The death of the injured person limits recovery to harms suffered before death.
An element of compensatory damages representing pecuniary loss from harm to a person's ability to earn money. Recovery requires proof of the existence and amount of the loss with reasonable certainty. The death of the injured person limits recovery to harms suffered before death.
Recovery for loss of earning capacity during marriage that is received after the determination date must be treated as marital property in dissolution.
Recovery for loss of earning capacity during marriage that is received after the determination date must be treated as marital property in dissolution.
Each sense below has its own examples, sources, and questions.
Lina Gems leased space from Arco Properties. A burst pipe destroyed display cases and inventory and forced the store to close during peak weeks. Lina proved the value of the ruined goods with invoices and the amount of lost profits with sales records. The court awarded compensatory damages for harm to property and harm to earning capacity.
Marvin worked as a construction foreman. A bellhop's negligence caused a hip fracture that eliminated his ability to perform physical work. Marvin accepted a lower-paying consulting role. A jury could award damages for the impairment of earning capacity shown by the change in his physical abilities.
Carlos suffered a crushed hand at work that reduced his earning capacity. He died from unrelated causes before trial. His estate may recover only for the impairment of earning capacity that occurred before his death.
2 common questions
Yes. Compensatory damages for harm to earning capacity require proof of pecuniary loss both as to existence and amount. Courts reject recovery when the plaintiff offers only general testimony without financial records or other concrete evidence.
Supporting sources
Yes. Under survival statutes the death of the injured person limits recovery for loss or impairment of earning capacity to harms suffered before death.
Supporting sources
During marriage one spouse obtained an advanced degree while the other provided financial support. Upon divorce the court refused to treat the degree or the resulting increase in earning capacity as divisible marital property.
Anne P. Graham and Dennis J. Graham were married on August 5, 1968, in Denver, Colorado. Throughout the six-year marriage Anne worked full-time as an airline stewardess and contributed seventy percent of the financial support used for family expenses and Dennis's education. Dennis attended school for approximately three and one-half years of the marriage and obtained a bachelor of science degree in engineering physics and a master’s degree in business administration at the University of Colorado. The couple jointly managed an apartment house and Anne performed the majority of the housework and cooking. No children were born during the marriage and no marital assets were accumulated. On February 4, 1974, the parties jointly filed a petition for dissolution in the Boulder County District Court. Anne did not make a claim for maintenance or attorney fees. After a hearing on October 24, 1974, the trial court found that the education obtained by Dennis during the marriage was jointly-owned property. The court evaluated the future earnings value of the M.B.A. at $82,836 and awarded Anne $33,134 payable in monthly installments of $100. The Colorado Court of Appeals reviewed the trial court's decision in Graham v. Graham, 38 Colo. App. 130, 555 P.2d 527 and reversed it. The Supreme Court of Colorado then took up the case.
View caseA couple lived together for decades under an oral agreement that one partner would handle business affairs and support the other according to his earning capacity. After separation the court considered whether the agreement created enforceable property rights based on the claimed earning capacity.
In 1952 plaintiff and defendant began living together and holding themselves out to the community as husband and wife. Defendant acknowledges that the two children born of the relationship are his. Plaintiff alleges that since the inception of the relationship she has performed domestic duties and business services at the request of defendant with the expectation that she would receive full compensation for them. Defendant has always accepted her services knowing that she expected compensation for them. They have filed joint tax returns over the past several years. Plaintiff seeks judgment in the amount of $250,000 on her first cause of action. The second cause of action realleges the first and adds that in 1952 the parties entered into an oral partnership agreement under which plaintiff would furnish domestic services and defendant would have full charge of business transactions. Under the agreement defendant would support, maintain and provide for plaintiff in accordance with his earning capacity, take care of the plaintiff and do right by her, and the net profits from the partnership were to be used for and applied to the equal benefit of plaintiff and defendant. Defendant commanded that plaintiff not obtain employment or he would leave her. Since 1952 defendant has collected large sums of money from companies and business dealings. Since December of 1975 defendant has dishonored the agreement, failed to provide support or maintenance, and refused her demands for an accounting. Special Term dismissed the complaint. The Appellate Division affirmed the dismissal of both causes of action. The case is presented on appeal to the New York Court of Appeals with the questions whether a contract as to earnings and assets may be implied in fact from the relationship of an unmarried couple living together and whether an express contract of such a couple on those subjects is enforceable.
3 common questions
Yes. In family-law support proceedings courts may impute income at the level of a parent's demonstrated earning capacity when the parent is voluntarily unemployed or underemployed.
No. Courts have held that a degree or the earning capacity it produces is not property subject to equitable distribution upon divorce.
Supporting sources
It may. In states that recognize such claims the agreement can support a cause of action for division of assets based on the partner's earning capacity and contributions.
Supporting sources
…of the parties. (f) The contribution by one party to the education, training or increased earning power of the other. (g) The earning capacity of each party, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children and the time…