Why can a damages award include future medical costs and lost earning capacity?

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In tort law, the primary objective of a damages award is to place the injured party in the position they would have occupied had the injury not occurred, to the extent that monetary compensation allows.1

Because common-law systems typically provide only a single, final award for an injury resulting from a specific wrongful act, the court must account for the entirety of the victim's losses at once. Consequently, the award must include compensation for future consequences that are reasonably certain to occur, such as:1

  • Future medical costs: The reasonable expenses for medical services the injured person will require as a result of the injury.1
  • Lost earning capacity: The projected loss of income or ability to earn wages stemming from the injury.1

While these future losses are inherently speculative, they are essential to the principle of full compensation, ensuring that the victim is not left to bear the long-term economic burden of a wrong committed by another.12