Household services analysis applied to wrongful death litigation: methodology, deliverables, and case-specific considerations.
In a wrongful death claim the household services component measures the housework, child care, home and vehicle maintenance, shopping, and care of other household members the decedent provided and can no longer provide. The economist draws the hours from the household's account and time-use data for a person of similar circumstances, prices each category at the local replacement wage, and projects the loss over the period the survivors would have received the services, which changes as children age and the household changes. The component stands on its own and can approach or exceed the earnings loss when the decedent was a full-time homemaker or a caregiver.
Replacement-cost valuation of the household production an injured or deceased person can no longer provide: meal preparation, cleaning, home and vehicle maintenance, shopping, child care, and care of other household members. The hours are drawn from national time-use data adjusted to the person's household composition and pre-injury role, and each category is priced at the local wage for the occupation that would replace it, then projected and discounted over the period of loss.
The components are the decedent's lost earnings and fringe benefits over a projected worklife, a personal consumption deduction that removes the portion of income the decedent would have spent on themselves, the replacement value of household services the decedent provided, lost financial support to dependents measured over each dependent's period of dependency, and in some frameworks the accumulation the decedent would have left to the estate. The records that drive the analysis are the decedent's tax returns, wage and benefit records, the household's composition and expenditures, and documentation of the services and care the decedent provided at home.
We issue the final report and provide deposition and trial testimony and rebuttal of opposing household services opinions.
Yes. The household services component does not depend on the decedent having earned wages. The hours of household work are drawn from the household's account and time-use data and valued at the cost of replacing them with paid services over the period the survivors would have received them.
The hours of child care and related work decline as children reach the ages at which the time-use data show parents providing less of it, and the projection steps down accordingly. The report shows the hours by year so the change is visible.
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