Opinion ID: 409059
Heading Depth: 2
Heading Rank: 2

Heading: Inflation damages

Text: 20 The district judge declined to give effect to any inflation factor, and the probable depreciation in the value of the dollar because he considered such a factor too speculative. 485 F.Supp. at 393, 394. Although recognizing that we have held that inflation damages are improper, Johnson v. Penrod Drilling Co., 510 F.2d 234 (5th Cir. 1975) (en banc), 5 the plaintiffs argue that after Liepelt damage awards of future earnings must account for the effect of inflation. 21 The plaintiffs' argument regarding the implications of Liepelt for our holding in Penrod is unavailing here. Both Liepelt and Penrod arose under federal wrongful death law. In contrast to FELA and maritime statutes, however, the FTCA generally requires federal courts to apply state law in determining the appropriate measure of damages. Ferrero v. U.S., supra. 22 Georgia law permits the trier of fact to consider inflationary trends in awarding damages. Wood v. Andersen, 145 Ga.App. 492, 243 S.E.2d 748 (1978); Jordan v. Fowler, 104 Ga.App. 824, 123 S.E.2d 334, 336 (1961). A determination regarding impact of inflation is necessarily based on hypothetical economic predictions. Yet Georgia courts have decided that evidence of inflation is not so speculative that the trier of fact can never rationally assess the effect of inflation. This policy decision precludes the trier of fact from refusing to account for inflation because it deems evidence of inflation inherently unreliable. The role of the trier of fact is narrower. It must decide whether, notwithstanding the hypothetical projections that necessarily accompany all predictions of inflationary trends, the proffered evidence of inflation possesses the definiteness and probative force that can reasonably be demanded of such evidence. 23 Here we are uncertain whether the trial judge complied with Georgia's policy regarding inflation damages. It is not clear whether he found the evidence of inflation too speculative as a general matter, a conclusion that conflicts with a decision of law made by Georgia courts, or whether, consistent with Georgia law, he found the evidence more speculative than evidence of inflation can reasonably be expected to be. 6 We accordingly vacate that part of the judgment establishing the amount of damages and vacate the findings relating to the inflation element of damages and remand to the district court for it to determine, and make findings, on whether, considering the uncertainty that inheres in evidence of inflation, the evidence presented in this case has met the standards of probative value that can reasonably be required of such evidence and, if it has, to resolve damages accordingly.