34.02 Damages Arising in the Future--Discount to Present Cash Value
In computing the damages arising in the future [because of future (medical) (caretaking)
expenses] [or] [because of the loss of (future earnings) (benefits) (or) (services)] you must
determine their present cash value. “Present cash value” means the sum of money needed now,
which, when added to what that sum may reasonably be expected to earn in the future, will equal
the amount of the [expenses] [and] [earnings] [benefits] at the time in the future when [the
expenses must be paid] [or] [the earnings (benefits) would have been received]. Damages for
[pain and suffering] [disability] [loss of a normal life] [and] [disfigurement] [loss of (society)
(companionship) (and) (sexual relations)] are not reduced to present cash value.
Notes on Use
This instruction may be used with IPI 34.01. If mortality tables are in evidence, also use
IPI 34.04.
On the issue of the use of “value” or “expense” for medical care, treatment and services,
see 30.06 Notes on Use.
Comment
This instruction has been modified from earlier versions. Prior 34.02 included the phrase
“... you must not [simply multiply the (expenses) (earnings) (benefits) (by the length of time you
have found they will continue) (or) (by the number of years you have found that the plaintiff is
likely to live)].”
Inclusion of this phrase requires the court to favor one method of determining present
cash value over another. There is a sound economic basis (though certainly not the only one) that
permits present cash value to be determined in exactly the manner prohibited by the former
instruction. This is known as the “total offset method.” See Beaubien v. Elliot, 434 P.2d 665
(Alaska 1967) and Kaczkawski v. Bolubasz, 461 Pa. 561, 421 A.2d 1027 (1980), wherein two
state supreme courts have judicially adopted this method. Also see 104 Dick. L. Rev. 679
(Summer 2000). The Illinois Supreme Court in Richardson v. Chapman, 175 Ill.2d 98, 676
N.E.2d 621, 221 Ill.Dec. 818 (1997) approved of this method of determining present cash value
in the “upper bound” figures used by plaintiff's expert. However, the Court did not adopt this
method or indicate it was preferred over other methods. Therefore, the committee makes no
recommendation as to which of several methods may be used to determine present cash value.
Future damages except for pain and suffering, disfigurement, disability, loss of normal
life, and loss of society and consortium are to be reduced to present cash value. Allendorf v.
Elgin, J. & E. Ry. Co., 8 Ill.2d 164, 133 N.E.2d 288 (1956), cert. denied, 352 U.S. 833, 77 S.Ct.
49, 1 L.Ed.2d 53 (1956); Avance v. Thompson, 387 Ill. 77, 55 N.E.2d 57 (1944), cert. denied,
323 U.S. 753, 65 S.Ct. 82, 89 L.Ed. 603 (1944); Howard v. Gulf, M. & O.R.Co., 13 Ill.App.2d
482, 142 N.E.2d 825 (4th Dist.1957). Cf. Lorenz v. Air Illinois, Inc., 168 Ill.App.3d 1060, 522
N.E.2d 1352, 119 Ill.Dec. 493 (1st Dist.1988), and Exchange Nat'l Bank v. Air Illinois, Inc., 167
Ill.App.3d 1081, 522 N.E.2d 146, 118 Ill.Dec. 691 (1st Dist.1988) and Drews v. Globel Freight