Detailed Answer
In New Mexico, you can recover lost self-employed income as part of your economic damages in a personal injury claim. Economic damages cover actual financial losses that flow directly from the accident. To succeed, you must show the income you lost, link it to the accident, and prove you took steps to limit your losses.
1. Understand Economic Damages Under NM Law
New Mexico law allows recovery of special damages, including lost profits and business income. See N.M. Stat. Ann. § 41-4-16 (link). You must prove that the lost income resulted from the defendant’s negligence.
2. Gather Pre-Accident Income Records
Collect federal and state tax returns, profit-and-loss statements, bank statements, invoices and client contracts from before the accident. These documents establish your baseline earnings and earning capacity.
3. Track Post-Accident Losses
Maintain detailed records of canceled jobs, reduced work hours and unfulfilled contracts. Save emails, work calendars, accounting software exports and any correspondence showing clients could not hire you due to your injuries.
4. Comply with the Statute of Limitations
Under N.M. Stat. Ann. § 37-1-8 (link), you generally have three years from the accident date to file a claim. If you miss this deadline, the court likely will dismiss your case.
5. Work with Experts and Prepare a Demand
Hire a forensic accountant or financial expert to calculate your lost income based on historical data and projected earnings. Use their report to draft a demand letter to the at-fault party or their insurer. Include all supporting records and a clear computation of your economic damages.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Helpful Hints
- Keep both digital and hard copies of all financial records.
- Maintain a daily work log to document potential income losses.
- Save email threads and texts with clients about canceled work.
- Update your profit-and-loss statements monthly for accuracy.
- Act quickly to preserve evidence and meet the three-year deadline.