This case involves a defamation claim levied against a senior employee in the wealth management firm. The plaintiff stockbroker claimed his superior made false and improper statements regarding his capacity to manage his clients’ portfolios. In turn, these claims affected the stock broker’s employment ability after he left the firm and his earnings have significantly declined. The plaintiff claimed that this alleged libel both financially and emotionally harmed him, as his professional credibility was dismantled. A forensic economist was sought to discuss the earning capacity of the plaintiff moving forward and the valuation of his emotional distress based off of a psychiatric evaluation.
Question(s) For Expert Witness
- 1. What is your experience calculating loss of earnings for potential defamation victims?
- 2. How would you calculate the dollar value of emotional distress after you've been provided a full psychiatric breakdown?
Expert Witness Response E-038768
I believe I am a good fit as far as valuing the claimant’s potential loss of past and future wages and earning capacity, as well as evaluating the present day cost of future medical and psychiatric care that may be outlined by the medical expert. I have calculated loss of earnings and/or future income in many cases over the last 12 years including personal injury matters, medical malpractice matters, wrongful death, and the like. I have worked on several cases involving victims of alleged defamation/slander/libel. I have reviewed a claim of lost earnings and profits for the sole proprietor of an insurance agency, who alleged libel as a result of an email passed among agency clients that allegedly accused him of poor business practices. With regard to the emotional distress issue, I can calculate the present value cost of future medical and psychiatric care the plaintiff will require provided that the current cost, frequency, and duration for each modality of care is identified by the medical expert or life care planner. However, valuing “emotional distress” itself is, in my experience, a non-economic or “pain and suffering” issue.