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Kaczkowski v. Bolubasz, 491 Pa. 561, 421 A.2d 1027 (1980).

In 1916 the United States Supreme Court mandated that awards for future damages be discounted to their present worth in order to avoid overcompensation of an injured plaintiff. The rationale for discounting was that “a given sum of money in hand is worth more than the like sum of money payable in the future.” Due to increasing realization of the economic effects of inflation, however, many courts are reconsidering “the fairness of basing awards for future damages upon the present purchasing power of the dollar.” In its attempt to reconcile the principle of full compensation with the economic effects of inflation, the Supreme Court of Pennsylvania, in Kaczkowski v. Bolubasz, took judicial notice to the current economic situation. Thus, it allowed presentation of evidence relating to inflation and increased productivity.

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