Auto Accident: Retaining an Economist

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

Retaining an economist in a motor vehicle accident matter follows the same steps as any injury claim: conflict check, written scope, and a records request that reaches the employer and benefit plans at once. The scope should match the injury. For a bounded loss the engagement may be limited to past wages and a short future period; for a catastrophic crash it covers lost earnings and earning capacity, fringe benefits, household services, and the present value of a life care plan. Counsel should also identify the sources of post-injury work capacity and future care so the economist is not asked to supply either.

Checklist

  1. Run the conflict check on the parties, insurers, and counsel
  2. Scope the engagement to the components the injury actually supports
  3. Request tax returns, W-2s or 1099s, pay stubs, and the employer's records of the absence and any return
  4. Identify who will supply the work-capacity opinion and any life care plan, and when
  5. Confirm the disclosure deadline and the format the venue requires

Questions to ask the economist

Timeline

About one week for retention and the records request, then two to four weeks of analysis after the records arrive, then one to two weeks for the draft and final report. A bounded past-loss calculation can move faster.

Required documents

Common pitfalls

Frequently Asked Questions

Can the engagement start narrow and expand later?

Yes. Many engagements begin with a past loss and a preliminary future range, then expand to household services and future care when the medical picture settles. The engagement letter should allow for that, and the report deadline should leave room for the added components.

What does the economist need from the employer?

The attendance and payroll records that show the dates out of work and any return, the personnel file entries on the person's position and pay progression, and the benefit plan summaries for retirement and health coverage. Those records anchor the past loss and the fringe benefit rate. A signed authorization at retention lets the request go out with the client's own documents.

How is the cost kept proportionate to a moderate injury claim?

By scoping the engagement to the components the injury supports and by phasing the work. A past-loss calculation and a bounded future period can be completed as a short engagement, and the letter can reserve the right to add household services and future care if the medical picture changes. The report states only what was valued, so a narrow scope does not read as an incomplete analysis.

References

Request a consultation on Motor Vehicle Accident or call (201) 343-0700. Plaintiff and defense counsel.