The interest of forensic economists is primarily limited to the calculations of compensatory damages and prejudgment interest. Economic testimony may also be helpful in the determination of punitive damages, where the economist may interpret financial data relating to the defendant’s financial condition. The economist (or any other expert) is not allowed to testify regarding non-economic damages.
Compensatory damages are awarded to compensate the injured person’s actual loss as a result of the injuries. Compensatory damages include:
An injured person is entitled to recover the past and future loss of earnings resulting from an injury caused by the defendant. To recover past lost earnings, plaintiff must prove the amount of income/earnings/salary/wages lost to date. To recover future lost earnings, plaintiff must prove the amount of income/earnings/salary/wages that will reasonably certain be lost in the future as the result of the injury.