Real-Life Math
Lawyers say they do very little business with numbers. Words are
their specialty. There are times, however, when an attorney needs to get out
the calculator.
When asked if lawyers need math skills, attorney Jeremy
White laughs. "Yes, unfortunately," he says. "You think you avoid it going
to law school, but...."
White cites consumer law as just one area
of law in which math is used. "You have a contract with financing rates, APRs
(annual percentage rates), a principal amount," he says. "If you're going
to assess that consumer claim you've got to break all that down."
You
are a personal injury lawyer and your client is suing for wages lost due to
a car accident she had a few years ago. Because of her back and neck injuries,
she has not been able to work since July 1, 2002.
The judgment is for
the plaintiff, meaning you and your client have won. But the judge is not
awarding full wage compensation. He says in his decision that your client
didn't follow her exercise program to help the healing process, and that her
abuse of painkillers kept her from being able to work sooner.
The judge
concludes that the wage loss for the first year since the accident must be
discounted by 50 percent. Since your client should have been fully recovered
by the second year, the judge orders a discount of 75 percent on the wages
for that 12-month period. For future losses and general damages, the judge
allows an additional $15,000.
Your client's earnings for the first
6 months of 2002 (before the time of the accident) were $21,194. The judge
says you can just double that figure to calculate a yearly earning figure
for the wage loss periods.
For the 2-year period following the accident,
what will your client's total settlement be? Remember to calculate the discounts
for the first and second 12-month periods, and don't forget the general damages
award.