What would Daubert say about those damages? 11.29.2004

The situation:

(From a question posted to a popular Forensic Economist's list serve by a CPA in Colorado:

A son dies without a spouse or heirs. The parents are the only ones who can sue. Son was 50. Dad is 85 and mom is 75. The business is a rental real estate company in a partnership. Son did all the managing of the property. Dad now has to do the management-getting tenants, arranging for repair men, etc.

Question: What are the damages to the son's estate?

Answer:

A. The opportunity cost of having to perform the property management work themselves.

These could be calculated as follows.

One angle is to figure out what a managment company would charge to do similiar work-most of those companies charge 10% of gross revenue. Mom and dad are 55% partners before son's death. Son and his two sisters were each 15% partners. The economic damage to parents would be 55% x gross revenue x 10%

B. Son's potential earnings over the SON's remaining worklife

If the parents can sue on the behalf of the estate, they would be entitled to their son’s earnings, less personal consumption. The son’s earnings would be his salary and share of any profits adjusted for taxes in the state as well.

C. Son's potential earnings over the PARENT's remaining life expectancy

The proceeds of the estate should be equal to the projected earnings of the deceased less personal consumption expenditure, but not for the worklife expectancy of the deceased, but the life expectancy of the beneficiaries. The rationale is that they (the estate) would have only benefited for as long as they lived.