earning capacity

The power of a person or a business enterprise to earn money or show a profit; to earn money or show a profit in a particular sum. The power to create property from earnings. Local Loan Co. v Hunt, 292 US 234, 78 L Ed 1230, 54 S Ct 695. An element considered in measuring damages recoverable for a personal injury. 22 Am J2d Damg § 92. The best test of the value of a going commercial enterprise; a test to be employed in the valuation of a corporation for the purpose of reorganization under the Chapter X of the Bankruptcy Act. For such purpose, –earning capacity" means normal capacity rather than an abnormal capacity consequent upon business conditions which cannot reasonably be expected to continue. 9 Am J2d Bankr § 1591. A person may have an earning capacity, even though not employed at any labor or occupation at the particular time in question. 22 Am J2d Damg § 89.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • earning capacity — n. The amount of money that a worker is capable of earning on the open market. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • earning capacity — Term refers to capability of worker to sell his labor or services in any market reasonably accessible to him, taking into consideration his general physical functional impairment resulting from his accident, any previous disability, his… …   Black's law dictionary

  • earning capacity — / ɜ:nɪŋ kəˌpæsɪti/ noun the amount of money someone should be able to earn …   Dictionary of banking and finance

  • loss of earning capacity — n. Damage to a person’s ability to earn money in the future. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • loss of earning capacity — An element of future damages resulting from a personal injury where the effect of the injury extends beyond the time of trial of the action for the injury in a decrease in earning capacity. 22 Am J2d Damg § 89 …   Ballentine's law dictionary

  • capacity — n. ability to hold 1) to capacity (filled to capacity) 2) lung; seating; storage capacity 3) a capacity of (a capacity of twenty gallons) ability 4) intellectual, mental capacity 5) one s earning capacity 6) a capacity for (a capacity for making… …   Combinatory dictionary

  • capacity — noun 1 amount held/produced ADJECTIVE ▪ high, large ▪ a high capacity electric pump ▪ large capacity disk drives ▪ limited, small …   Collocations dictionary

  • capacity — ca|pac|i|ty [ kə pæsəti ] noun count or uncount *** 1. ) the amount of something that can be put in a container or the number of people that a place has room for: capacity of: The fuel tanks have a capacity of 25,000 gallons. a concert hall with… …   Usage of the words and phrases in modern English

  • capacity */*/*/ — UK [kəˈpæsətɪ] / US noun [countable/uncountable] Word forms capacity : singular capacity plural capacities 1) a) the amount of something that can be put in a container, or the number of people that a place has room for There are plans to increase …   English dictionary

  • earning power — See earning capacity …   Black's law dictionary

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