When someone is injured in a car accident or is the victim of medical negligence causing death or personal injury, there are many factors to consider and questions that need to be asked. How much is the individual’s pain and suffering really worth? What are the economic damages accrued as a result of the incident? How can we even begin to put a price on seemingly intangible concepts? When it comes to economic damages, the experts who determine these sums are forensic economists, who apply economic theories and methods to the litigation framework.
Here are a few key things to know about forensic economists and how they can help you or your loved ones get the fairest payout in times of legal hardship.
What exactly do forensic economists do?
Forensic economists, like the ones at The Knowles Group, offer a variety of services, including the calculation of pecuniary damages in litigation cases, liability analyses, statistical analyses of discrimination, and asset valuation.
The most common cases handled by forensic economists are wrongful death and personal injury lawsuits. Generally, these cases require economic appraisals to determine how much the court should award the plaintiff in monetary damages in a lump sum payment. To determine this amount, economists consider factors like pre-injury annual earning capacity, post-injury annual earning capacity, wage growth, and work life expectancy.
What is the difference between a forensic economist and a forensic accountant? And which of these should I consult?
If you’ve heard of forensic economists, you may have also heard of forensic accountants. Though the two terms may seem synonymous, the roles are actually significantly different. A forensic accountant examines where a company’s financial resources are being allocated and where they have been allocated in the past. A forensic economist, on the other hand, considers income, business earnings, and any other economic damages to formulate an accurate representation of an individual’s or a business’ finances.
Forensic economists are generally more equipped to handle the complexities of the legal world than forensic accountants since their role requires them to take a more holistic approach in assessing matters such as income loss and financial damages.
Why should I consider hiring a forensic economist? And what do I need to know?
There are plenty of myths surrounding personal injury cases and what the best practices are when pursuing such claims, which can make it difficult to know which resources are worth investing in. That said, you cannot put a price on your peace of mind – and forensic economists can play a significant role in ensuring exactly that. Their expert guidance can minimize stress and aid in securing a legal victory.
Litigation is also inherently an adversarial procedure, which can make it extremely difficult for people who are emotionally implicated in the proceedings to be impartial. Recruiting an expert forensic economist is an excellent way to mitigate this because it is their job to provide their professional and objective opinions in these cases. A good forensic economist will stick to the economic facts of your case, thereby improving its validity.
When should I hire a forensic economist?
It’s advisable to seek the assistance of a forensic economist sooner rather than later. Engaging a forensic economist late in your case can create issues as it leaves minimal time for appropriate research and analyses to be conducted, particularly if interrogations have already concluded.
Legal proceedings can be complex and overwhelming, particularly in cases of personal injury or medical malpractice. However, with the assistance of expert professionals like forensic economists, the stress surrounding litigation can be greatly alleviated. Additionally, forensic economists can be extremely helpful in strengthening your case and increasing your chances of a legal victory.