Baxter v. Philadelphia & Reading Railway Co.

Citations

• 264 Pa. 467
• 107 A. 881
• 9 A.L.R. 504
• 1919 Pa. LEXIS 679

Syllabus

<p>Negligence — Damages—Burning power — Profits—Evidence.</p> <p>1. Profits should not be used as a safe guide for measuring earning power, although they may indicate the possession of business ability and qualifications. Strictly speaking, compensation for the loss of earning power as far as possible should be limited to earnings which are the result of personal effort, either physical or mental, in which profits from invested capital, or profits from the labor of others must not be included.</p> <p>2. Where it is impossible in a business enterprise to distinguish between the personal earnings of the individual and the return from the capital invested and the labor of others, the net income, or net results from such business, cannot be considered in determining the amount of damages to which the claimant is entitled. But where the predominating factor is the directing intellectual and physical labor of the individual, such business may be characterized as personal to that individual, though others with tools and equipment may aid in the work.</p> <p>3. The question is, would the business if no accident had occurred have the same measure of success it always had; and would that success continue during the period of the probable life of the owner ? If the answer is in the affirmative, then there is no loss on that account; but, if in the negative, since the personal equation is concerned, the uncertain factors, such as business depression, market conditions, business losses, will not be sufficient to deprive the claimant of the right to fair compensation for the loss of earning power where the latter can be fairly and .approximately measured.</p> <p>4. Each case must depend on the nature and extent of the business, the amount of personal direction and labor to be engaged in connection therewith, as well as the amount of capital invested and the labor employed.</p> <p>5. The effect of the loss of the individual’s services to the business may be indicated by evidence p