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Loss of earnings following personal injury: do the courts adequately compensate injured parties?



The law provides that any person injured through the fault of another can claim monetary compensation in the form of damages. This study focuses on compensation paid for loss of future earnings and the fact that little use has been made of economic analysis by courts in Britain in determining such damages. This is in contrast both to what happens in the US and to the extensive use made in British courts of experts from other disciplines. A comparison of awards adjudicated in British courts with a US-style approach reveals substantial and systematic under-compensation under the English legal system.