Economic damages in Pennsylvania personal injury cases

The case law in each states makes the calculation of the damages in personal injury cases a little different in each state. Below are some of key features of economic damage calculations in Pennsylvania personal injury cases.

1. The total offset method is required in all non-medical malpractice personal injury torts. (Kaczkowski v. Bolubasz (Pa. 421 A.2d 1027) However, productivity can be factor in if the person's earning history suggest that his or her wages would have grown at a rate greater than inflation.

2. No income taxes are generally accounted for in personal injury damage calculations

3. Discounting is used in medical malpractice personal injury torts.

Specifically, Act 13, the Pennsylvania Medical Care Availability and Reduction in Error Act ("MCARE") was enacted by the Pennsylvania legislature on March 20, 2002.

Section 510 of MCARE states:

"Future damages for loss of earnings or earning capacity IN A MEDICAL PROFESSIONAL LIABILITY ACTION shall be reduced to present value based upon the return that the claimant can earn on a reasonable secure fixed income investment. These damages shall be presented with competent evidence of productivity and inflation over time. The trier of fact shall determine the applicable discount rate based on competent evidence."