Judicial principles and studies
Material Damage for Minors: Lost Earnings vs. Reduced Capacity
A brief outline of material damage and compensation criteria for a minor, distinguishing lost earnings from reduced earning capacity and noting the need for specialized medical expertise.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The study addresses how to characterize material damage and the compensations due to a minor. Material damage is described as an infringement of a financially valuable interest. A child who is not of working age and has no income is not entitled to compensation for lost earnings; however, compensation for reduced earning capacity may be appropriate when injuries result in permanent impairment affecting daily functioning and future ability to work.
Summary
- Distinguish lost earnings from reduced earning capacity: lost earnings presuppose prior income that was reduced or lost, while reduced capacity denotes an actual impairment affecting current performance or future work potential. - Compensation for lost earnings is payable only if there was proven income before the incident, a loss of that income due to the injury, and a causal link; if the injured person remains in their employment with the same income, this compensation is not due. - Reduced earning capacity is measured by the degree of incapacity to perform usual tasks, household duties, or daily activities, and it extends to future work ability; it can apply even to persons who were not working if the injury affected their functional capacity. - A worker is entitled to compensation for reduced capacity when the injury alters the nature of their job, their wage, or promotion prospects; no compensation is due if neither capacity nor pay changed. - An expert report that equates lost earnings with reduced capacity or treats a non-working child as having lost earnings is contrary to law and precedent and cannot form the basis of a judgment; a new expert assessment by specialized examiners, including an orthopedic surgeon, should be conducted to evaluate the current and future impact of the injury.
Practical significance
- Guides correct legal classification of damages to determine the proper form of compensation. - Requires rejecting or replacing expert reports that conflict with legal standards and ordering specialized medical assessments to establish functional impact. - Highlights the need to include an orthopedic surgeon among experts to assess musculoskeletal impairments and their effect on future work ability. This is a general educational summary, not a judicial text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.