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Abstract

An amount to cover a future loss of earnings is more valuable to the plaintiff if he received the amount today than if he received the same amount in the future. Therefore, if you decide to award plaintiff an amount for lost future earnings, you must discount it to present value by considering what return would be realized on a relatively risk-free investment. (From Section 4.12 of the pattern jury instructions of the U.S. 5th Circuit Court of Appeal)

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Copyright: © 2002 National Association of Forensic Economics

Contributor Notes

*Melville Z. Wolfson, PhD is deceased. Shael N. Wolfson is with Forensic Economics Corporation, New Orleans, LA.