Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Rhode Island attorney for guidance tailored to your situation.
Detailed Answer
When a self-employed person suffers income loss after an accident in Rhode Island, that lost earnings can qualify as “special damages” in a personal injury claim. To document and claim these losses, follow these key steps:
- Understand the Legal Basis
Rhode Island law allows recovery of lost earnings as part of the total damages award. See R.I. Gen. Laws § 9-1-4 (defining compensable damages) and note the three-year statute of limitations for personal injury claims under § 9-1-13.1. - Gather Financial Records
Compile documents reflecting your pre-accident income and post-accident shortfall:- Tax returns (last 3 years)
- Business ledgers, profit-and-loss statements, invoices
- Bank statements showing deposits
- Contracts or client agreements proving projected earnings
- Maintain Ongoing Records
Continue documenting any ongoing loss, including canceled jobs, reduced hours, or decreased billing rates. Use a dated log to track missed opportunities. - Obtain Expert Analysis
Engage an economic or accounting expert to calculate your exact income loss. Their affidavit or report will strengthen your claim by translating raw data into a credible damage figure. - Provide Proper Notice
If you claim against an insurer or municipality, issue a formal notice of claim within 180 days (if applicable) to preserve your right to seek compensation. - Demand Package
Prepare a demand letter outlining:- Summary of accident facts
- Medical treatment and impact on ability to work
- Detailed calculation of past and future lost earnings (backed by expert report)
- Copies of supporting records
- File Suit if Necessary
If negotiations stall, file a complaint in Rhode Island Superior Court before the three-year deadline. Your complaint should itemize each category of damages, including lost self-employment income.
Helpful Hints
- Keep contemporaneous notes: jot down dates, clients lost, and reasons work was missed.
- Organize digital and paper records in folders labeled by date and document type.
- Get written statements from clients or contractors who can confirm canceled work.
- Consult an attorney early to ensure procedural requirements (like notices) are met.
- Consider mediation or alternative dispute resolution before going to trial to save time and expense.
- Stay proactive: update your settlement demand if new losses arise.