Forensic Economics Expert Opines on Loss of Earnings for Injured Firefighter

Case Overview

This case involves a 35 year old male firefighter who was seriously injured while fighting a large building fire in Minneapolis. During the fire, the firefighter was scaling a ladder when he fell nearly 15 feet to the street below, suffering a severe back injury which rendered him paraplegic. As a result of his injuries, the firefighter was unable to continue his career, and a forensic economist was sought to determine the impact of his lost salary and benefits.

Questions to the Appraisal expert and their responses

Please briefly describe what sources/methods you might use to calculate loss of benefits for a firefighter.

Loss of earnings, or in some states earnings capacity, as well as loss of fringe benefits are assessed based on historical earnings, expected growth in earnings/paygrades/inflation, and benchmarks from compensation surveys and data compiled by trade/occupational groups as well as the U.S. Department of Labor. Fringe benefits for a firefighter will typically include paid vacation days, sick leave with pay, employer contributions for medical insurance/prescription/dental/vision, annuity funds, deferred compensation plan, 401K, 403b and or I.R.A retirement employer contributions. In addition, losses may include retirement income based on last salary after years of service. Loss of social security benefits would also be considered using benefit calculators and contributions. I routinely prepare claims of this nature across the whole spectrum of employment. In the course of my calculations, I consider any particularities related to the fire department, union, or pension system involved based on review of historical earnings record, interviews (individual/employer), benefit, union or pension plan documents and website benefit information specific to this individual's employment.

Have you calculated loss of benefits/earnings in a similar case?

I have prepared hundreds of claims over the course of my career and this has been an area of specialty for 20 years.

About the expert

This expert has three decades of experience in forensic accounting, forensic economics, and dispute damages analysis. He specializes in the analysis and valuation of complex damages, and he has consulted in more than 1,000 cases in a wide variety of markets and industries. He obtained his BA in economics and his MS in accounting from Rice University. Today, this expert is a certified fraud examiner and public accountant. He is also certified in business valuation. Additionally, he is an active member of several professional organizations, including the Association of Certified Fraud Examiners, the National Association of Forensic Economics, and the American Institute of Certified Public Accountants. This expert previously served as a senior consultant at Deloitte and Touche, the regional director of dispute consulting and audit special services at BDO Seidman, the dispute analysis practice leader at the Law and Economics Consulting Group, and the managing director at LinkEcon and Accumyn Consulting. He is currently the managing director of a forensic economics consulting firm in Texas.

E-146580

Specialties:

Appraisal