Spinal Cord Injury: Is an Economist Needed?

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published · Reviewed

Spinal cord injury claims justify an economist in nearly every case. The person's prior occupation has usually ended, attendant care and equipment recur for life, and the household work the person did before the injury now has to be replaced. Each of those components is a future stream with its own growth rate and duration, and the present value of the whole can only be built by an economist working from the medical, care, and earnings records. Counsel considering an economist should start by assembling the earnings history and identifying who will author the life care plan, because the plan's items and the person's post-injury work capacity are the inputs the economist prices.

Checklist

  1. Gather the earnings history and the fringe benefits that came with the prior job
  2. Identify the life care plan's author and timing, since the plan supplies the care and equipment items to be valued
  3. Determine whether the record addresses what sedentary or part-time work, if any, the person can do
  4. Document the household work the person performed before the injury and the hours now supplied by family
  5. Note the neurological level and age, because they drive life expectancy, care hours, and the length of the earnings loss

Questions to ask the economist

Timeline

Two to three weeks to a preliminary earnings view; the care component waits for the life care plan. The full report follows the retention and records phases.

Required documents

Common pitfalls

Frequently Asked Questions

Which component of a spinal cord injury claim is usually the largest?

The present value of attendant care over the person's lifetime is usually the largest figure, followed by future lost earnings for a person injured early in a working life. Equipment, supplies, and modifications recur on replacement cycles and are sensitive to the cost growth rate applied. The economist values each on a consistent basis so the total can be examined item by item.

Should the economist be retained before or after the life care plan is written?

The retention can come first, but the care component cannot be valued until the plan exists. The economist can build the earnings, benefit, and household services components from the financial records while the plan is being prepared, then price the plan item by item when it is delivered. What matters is that the plan's delivery date falls before the economic report's deadline.

How does life expectancy enter the analysis?

It sets the duration of the care stream and, with worklife, the length of the earnings loss. Where the medical opinions address the injury's effect on life expectancy, the economist applies the opinion in the record and shows the result under the general population tables as an alternative. The choice is stated so the fact finder can see how much of the total it moves.

References

Request a consultation on Spinal Cord Injury or call (201) 343-0700. Plaintiff and defense counsel.