"The Calculation of Damage Awards: The Issue of 'Prejudgment
 Interest'"

      Journal of Forensic Economics, Vol. 12, No. 2,
      Spring/Summer 1999

      BY:  DAVID E. AULT
              Southern Illinois University at Edwardsville
           GILBERT L. RUTMAN
              Southern Illinois University at Edwardsville

ABSTRACT:
 This paper discusses the inconsistent treatment in the manner in
 which future damages are calculated as compared to the manner in
 which current law permits past damages to be calculated. The
 awarding of a payment, frequently called "prejudgment interest,"
 to compensate an injured party for the effects of inflation
 and/or loss of control over the use of funds in the past damage
 period depends upon the nature of the case and the jurisdiction
 in which the case is filed. Courts have been particularly
 reluctant to permit consideration of these two effects when
 calculating past damages in cases such as personal injury suits
 in which the claim is unliquidated. This paper also discusses
 reasons for this disparate treatment, the rationale for treating
 past and future losses in a consistent manner, and the effects
 of the current rules that govern the calculation of damage
 awards on the efficiency of the judicial system.

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Contact:  DAVID E. AULT
   Email:  Mailto:dault@siue.edu
  Postal:  Southern Illinois University at Edwardsville
           Department of Economics
           School of Business-Box 1051
           Edwardsville, IL 62026-1102  USA
   Phone:  (618)650-2578
     Fax:  (618)650-3047
 Co-Auth:  GILBERT L. RUTMAN
   Email:  Mailto:grutman@siue.edu
  Postal:  Southern Illinois University at Edwardsville
           Department of Economics
           Box 1102-School of Business
           Edwardsville, IL 62026-1102  USA