Auto Accident: Economist at Trial

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

Trial testimony in a motor vehicle accident matter scales with the claim. For a bounded loss the economist may need only a short direct examination on the past wages and a modest future period. For a catastrophic crash the testimony covers every component and the present value of each, with demonstratives showing the earnings gap by year, the household services replacement cost, and the life care plan's present value by category. In either case the jury needs to see where the numbers came from, and the opposing economist's differences should be explained on direct rather than discovered on cross.

Checklist

  1. Scale the demonstratives to the claim: a single timeline for a bounded loss, component boards for a catastrophic one
  2. Prepare the earnings gap by year and the present value explanation
  3. Identify the source of the post-injury path on direct; where that opinion was coordinated with a vocational specialist, say so plainly
  4. Prepare a comparison of the two economists' assumptions and what each difference moves
  5. Confirm every board figure ties to a report table

Questions to ask the economist

Timeline

One preparation session in the week before testimony for a bounded loss; one to two sessions for a catastrophic claim.

Required documents

Common pitfalls

Frequently Asked Questions

How should the economist address a return to work on direct examination?

Directly: the person is working, the work pays less or offers less than the prior path, and the loss is the difference over the remaining worklife. Showing the two paths on one chart makes the point without overstatement and takes the issue away from cross.

How much of the testimony should be spent on present value in a moderate injury case?

Enough for the jury to understand why a future loss is stated as a smaller number today, and no more. A single example with one future payment usually does it, followed by the year-by-year table for the actual claim. In a bounded claim with a short future period the explanation can be brief, because the discount effect is small and the jury's attention belongs on the earnings gap.

How does the economist handle cross on an unusual earnings year?

By explaining why the base was set as it was, whether the unusual year was included, averaged, or excluded, and what the result looks like under the alternative. If the report already shows the base under more than one treatment, the question confirms the economist considered it rather than exposing an oversight. The preparation session should identify every year opposing counsel could call unusual.

References

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