Detailed Answer: Documenting and Claiming Lost Self-Employed Income in North Dakota
Disclaimer: The information provided here is for general educational purposes and does not constitute legal advice.
If you are self-employed and suffer lost income due to an accident caused by a third party, North Dakota law allows you to recover those losses under your personal injury claim. NDCC §32-03-02 defines recoverable damages to include loss of earnings. Here is how to document and claim your lost profits.
1. Gather Financial Records
- Tax returns from the last 3–5 years
- Bank and business account statements
- Detailed profit and loss statements
- Client contracts, invoices, and receipts
2. Establish the Link Between the Accident and Income Loss
Obtain a police or accident report. Collect medical records showing your injuries and treatment. Use these documents to show how the accident prevented you from working at your normal capacity.
3. Calculate Lost Income
- Compare pre-accident and post-accident earnings.
- Factor in recurring expenses you still paid despite not working.
- Project future income losses if your injuries will affect long-term earning ability.
4. Use Expert Evidence
A forensic accountant or vocational expert can prepare an opinion on past and future income losses. Their report strengthens your claim by providing an objective analysis.
5. File Your Claim and Meet Deadlines
North Dakota’s statute of limitations for personal injury is two years from the date of the accident (NDCC §28-01-15). Send a demand letter to the at-fault party’s insurer with your documented losses. If the insurer denies or delays a fair settlement, consider filing a lawsuit before the deadline.
6. Negotiate or Litigate
Be prepared to negotiate using your documentation and expert reports. If settlement talks stall, you may need to file suit and present your evidence in court. NDCC §32-03-02 (Measure of damages) allows recovery of lost earnings as part of actual damages.
Helpful Hints
- Keep meticulous records. Update your profit and loss statements regularly.
- Photocopy all original documents before sharing them. Maintain a secure backup.
- Track household and business expenses you incur during recovery.
- Consult a CPA for accurate financial summaries.
- Consider mediation to resolve disputes faster and reduce legal costs.