How has the English rule been applied to the calculation of the value of the present value discount and of an adjustment for inflation?

In United States v. English, 521 F.2d 63 (9th Cir. 1975) this court considered the application of the interaction of a present value discount and of an adjustment for inflation to damage awards. We held that in computing a damage award under California law, the trier of fact could consider competent evidence of inflation. Id. at 74. That decision was expressly limited to wrongful death actions. Id. at 76. It was also limited to Federal Tort Claims actions in which the applicable state law supported consideration of inflation. See Hollinger v. United States, 651 F.2d 636, 641-42 (9th Cir. 1981).

In Sauers v. Alaska Barge, 600 F.2d 238 (9th Cir. 1979), the English rule was applied to the damage claims of an injured plaintiff who brought his action under federal law. We held that district courts are to consider competent evidence of inflation in computing damage awards. Id. at 246-247. However, we did not reach the question of how the dual factors of the present value discount and the adjustment for inflation affect that computation. This case presents the issues of the relationship of the two factors and of the evidentiary responsibility as to each factor.