Personal injury cases often involve individuals experiencing a reduced ability to perform activities of daily living (ADLs), which impacts the economic value of household services they produce. While household chores do not involve direct monetary transactions like regular employment, they still hold significant economic value. When individuals are unable to perform these tasks due to injury or other reasons, they may need to hire external help from the market.
To evaluate the economic impact of lost household services, analysts often rely on time diary data from the American Time Use Survey (ATUS) and wage surveys from the Bureau of Labor Statistics. The value of these services is calculated by multiplying the hourly market rate of workers performing similar tasks by the hours spent on those activities. These wages correspond to various jobs, such as taxi drivers, childcare workers, housekeepers, cleaners, couriers, and others.
Case Study: Lorial
Lorial, a woman who suffered a back injury, rotator cuff injury, and knee injury from a motor vehicle accident, provides a real-world example of how household service losses are assessed. Her doctors have advised her not to lift over 20 pounds or walk and stand for more than 50% of the day. This has significantly impacted her ability to perform household tasks.
Methodology
Two methods are commonly used to assess the loss of household services:
1. Interview-Based Assessment
An earnings analyst interviews the injured individual to determine the percentage of tasks they can no longer perform. For example, in Lorial's case, the following table summarizes her weekly household activities, the percentage of tasks she can no longer perform, and the associated economic loss:
| Time Use Category | Hours/Week | Loss % | Hours Lost | Hourly Rate ($) | Dollar Loss/Week ($) | Description |
|---|---|---|---|---|---|---|
| Inside Housework | 1.44 | 50% | 0.72 | 13.57 | 9.77 | Limited ability to carry laundry, vacuum, mop floors, etc. |
| Food Cooking & Cleanup | 2.05 | 5% | 0.1025 | 13.55 | 1.39 | Tasks take longer due to breaks; cannot clean refrigerator or stoop. |
| Pets, Home & Vehicles | 5.36 | 50% | 2.68 | 15.81 | 42.37 | Cannot walk dogs, mow lawn, shovel snow, or perform heavy tasks. |
| Household Management | 1.05 | 0% | 0 | 19.90 | 0.00 | No loss. |
| Shopping | 2.08 | 10% | 0.208 | 13.73 | 2.86 | Limited ability to carry heavy items; can shop online or in-store. |
| Obtaining Services | 0.12 | 0% | 0 | 16.72 | 0.00 | No loss. |
| Travel for Household Activity | 2.07 | 0% | 0 | 15.11 | 0.00 | No loss. |
2. Medical File Analysis
Medical records may indicate physical limitations, such as restrictions to light work. Light work typically involves exerting up to 20 pounds of force occasionally, 10 pounds frequently, or negligible force constantly. It may also require significant walking, standing, or sitting with occasional pushing or pulling. For example, in the "Pets, Home & Vehicles" category, Lorial is limited to tasks requiring light exertion, such as exterminating pests, finishing furniture, or taking the car to a self-service station. However, she cannot perform tasks requiring medium or heavy exertion, such as changing car tires, lifting her dog, or shoveling snow.
Using this approach, Lorial's loss in the "Pets, Home & Vehicles" category is calculated as 95% of $15.81, resulting in a weekly loss of $80.50. This figure is higher than the interview-based calculation, as medical file analysis accounts for the physical limitations that prevent individuals from performing certain tasks entirely.
Conclusion
Both interview-based assessments and medical file analyses provide valuable insights into the loss of household services. While interviews reveal the specific tasks an individual can or cannot perform, medical file analysis offers a broader perspective on physical limitations. Combining these methods can lead to a more comprehensive evaluation of the economic impact of lost household services, as demonstrated in Lorial's case.