Loss of earning capacity is a concept that is relevant to actions in which a wrongdoer is held liable for the detrimental effect of his actions on a claimant’s capacity to generate an income.Take the example of a claimant who had worked as a shift leader in a mine but after a damage-causing event is only capable of working above ground as a clerk. By comparing his salary pre-morbid with his salary post-morbid, it is possible to calculate the difference. This difference, if the former is the greater, constitutes the damage suffered by the claimant and, as such, the amount constitutes what he can claim as compensation.In an instance where a person is not in a position to furnish evidence about his earnings pre- and post-morbid, nevertheless, the court may award compensation for the claimant’s loss of earnings.Essentially, the compensation is payment for loss of earning capacity and not for loss of earnings.In making such an award, the court recognises that the claimant experiences a partial or total impairment of his capacity to generate an income.Koch states that in such problematic cases the courts often shy away from quantifying a claimant’s estimated annual income.Instead of employing the sum-formula approach,the courts opt for a general assessment using the “some-how-or-other” approach.What seems at first like a straightforward pre- and post-morbid calculation therefore is fraught with intricate theoretical questions. Although this problem is more evident in cases of unemployed claimants and children, it may also occur in other cases where loss of earning capacity is one of the heads of damages. / Prof. J.W.G. Van der Walt
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:9554 |
| Date | 10 June 2008 |
| Creators | Millard, Daleen |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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