Thursday, December 6, 2012

COMPUTATION OF LOSS OF EARNING CAPACITY



On the contrary, we find said certification sufficient basis for the court to make a fair and reasonable estimate of Jose Marcial's loss of earning capacity just like in Tamayo v. SeƱora[52] where we based the victim's gross annual income on his pay slip from the Philippine National Police.  Hence, we uphold the trial court's award for Jose Marcial's loss of earning capacity.

While the trial court applied the formula generally used by the courts to determine net earning capacity which is, to wit:
Net Earning Capacity =  life expectancy* x (gross annual income  - reasonable
living expenses),[53]
*Life expectancy = 2/3 (80 - age of the deceased)

we, however, find incorrect the amount of P6,537, 244.96 arrived at.  The award should be P6,611,634.59 as borne out by the following computation:
Net earning capacity         = 2 (80-36[54]) x 450, 844.49[55]-50%[56]
              3
= 88 x 225,422.25
    3
= 29.33 x 225,422.25

= P6, 611,634.59 




[ G.R. No. 170071, March 09, 2011 ]
HEIRS OF JOSE MARCIAL K. OCHOA NAMELY: RUBY B. OCHOA, MICAELA B. OCHOA AND JOMAR B. OCHOA, PETITIONERS, VS.G & S TRANSPORT CORPORATION, RESPONDENT.


 



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