What Are Damages in a Personal Injury Case?

In personal injury cases, damages refer to the monetary compensation awarded to the injured party to cover losses incurred due to the injury.

The primary purpose of damages is to compensate personal injury victims for the physical, emotional, and financial hardships they have endured due to someone else’s negligence or actions.

The court determines the monetary value of damages based on the following factors:

• The severity of the injury
• The extent of medical treatment required
• Impact on daily life and activities
• Lost wages and potential loss of future earnings
• Emotional harm and mental anguish
• Pain and suffering the victim endured

These damages help cover the financial burden that victims face in the aftermath of an accident.

While no amount of money can truly make up for the injuries victims have suffered, damages aim to restore the injured party to their previous condition as much as possible.

Punitive damages can also serve as a form of punishment for the negligent party and act as a deterrent to prevent similar incidents from occurring in the future.

Types of Damages in Personal Injury Cases

Typically, there are two types of damages in a personal injury claim: compensatory and punitive.

Also known as actual damages, compensatory damages are meant to compensate for specific losses incurred by the injured party.

These can include:

• Economic Damages: These damages cover tangible financial losses such as medical expenses, lost wages, and property damage.
• Non-Economic Damages: These damages include intangible losses such as pain and suffering, emotional and mental distress, loss of enjoyment of life, and more.

Punitive damages are another type of damages, but they are awarded much less consistently.

The court usually only awards punitive damages in extreme cases where the defendant acted with malice or gross negligence.

Unlike compensatory damages, the purpose of punitive damages is not to compensate the victim but to punish the defendant and deter them from repeating similar behavior in the future.

Economic Damages in Personal Injury Cases

Economic damages are quantifiable financial losses directly attributed to the injury.

These damages aim to reimburse the injured party for actual monetary expenses incurred.

Examples of economic damages include:

• Medical bills
• Future medical expenses
• Lost wages
• Lost future earnings
• Property damage
• Out-of-pocket expenses
• Legal expenses
• The collateral source rule

Medical Bills

Medical bills are the most common form of economic damages in personal injury cases.

Medical bills that may be awarded under general damages include:

• Hospital Stays: This expense includes the cost of admission, medication, and any other treatment received during the hospital stay.
• Doctor Visits: The court may award economic damages for the cost of seeing a doctor for diagnosis and treatment.
• Surgeries and Procedures: If an injury requires surgery or other medical procedures, the cost of these treatments can significantly impact a victim’s financial well-being. Economic damages aim to reimburse these expenses.
• Prescription Medications: The cost of prescribed medications and over-the-counter drugs to treat the injury can easily add up. Economic damages may cover these expenses.
• Therapy and Rehabilitation Costs: These expenses cover any physical therapy or rehabilitation needed for the injury.
• Other medical treatments necessary for the care and recovery of the injury

Medical bills can add up quickly and become a significant financial burden for injured individuals.

Economic damages aim to cover these expenses and provide the victim with the means to receive proper medical care and treatment.

Future Medical Expenses

In cases where the injury requires ongoing medical care or rehabilitation, the court may award compensation to cover the anticipated future costs of these treatments.

From long-term medications to physical therapy, the cost of future medical expenses can be substantial and impact a person’s financial stability for years to come.

Economic damages aim to alleviate this burden by compensating for these future costs.

Lost Wages

Injuries can also prevent individuals from working, leading to lost income and financial strain.

Economic damages may include compensation for lost wages due to missed work during recovery.

This compensation can consist of salaries, bonuses, and other forms of income that the injured person would have received during their time off if they had not been injured.

Lost Future Earnings

Injuries that result in long-term or permanent disability may impact the victim’s ability to earn income in the future.

When awarding economic damages, the court often considers the individual’s lost or diminished earning capacity.

This compensation can include lost future wages, bonuses, promotions, and other forms of income that the person may have earned if not for the injury.

The victim’s age, occupation, and life expectancy help the court determine the amount of compensation for lost future earnings.

Property Damage

In cases involving damage to various properties, such as vehicles in car accidents, the court may provide compensation to cover repair or replacement costs.

These damages aim to reimburse the victim for any property lost or damaged resulting from the injury-causing incident.

The fair market value of the damaged property before the incident is typically a determining factor of the amount of compensation awarded.

Out-of-Pocket Expenses

Economic damages may include other expenses incurred as a direct result of the injury.

These can include:

• Transportation Costs: If the injury requires transportation for medical treatment, the travel cost may be part of the economic damages.
• Home Modifications: In cases where an injury results in permanent disability, compensation may be awarded for modifications to the victim’s home to accommodate their disability.
• Household Services: If an injury prevents a person from completing household tasks, such as cooking and cleaning, they may receive compensation for hiring domestic help.
• Childcare Expenses: If an injury prevents a parent from caring for their child, they may receive compensation for the cost of childcare.
• Medical Equipment and Assistive Devices: In cases where an injury requires the use of medical equipment or assistive devices, their cost may be part of economic damages. These can include wheelchairs, crutches, prosthetics, and more.

The Collateral Source Rule

Many states have a collateral source rule, which prevents the defendant from reducing economic damages by compensation the plaintiff received from other sources, such as insurance coverage and workers’ compensation benefits.

This rule prevents the defendant from benefiting from the injured party’s proactive measures and ensures that the victim receives full compensation for their economic losses.

For example, if a person is injured in a car accident and receives compensation from their insurance company, the defendant cannot use that as an argument to reduce the economic damages they owe.

This rule deters defendants from escaping accountability for their actions by arguing that the victim has already been compensated.

Non-Economic Damages in Personal Injury Cases

Unlike economic damages, which are tangible and quantifiable, non-economic damages are more subjective and aim to compensate the injured party for intangible losses.

The specific monetary value of non-economic damages is usually determined at the court’s discretion, and they may vary significantly depending on the unique circumstances of each case.

Pain and Suffering

Pain and suffering damages aim to compensate the victim for the physical and emotional pain that their injury has caused.

This compensation can include current and future pain and suffering, including chronic pain.

While these damages are challenging to quantify, the court may consider the duration and severity of pain, impact on daily life, and medical records when determining the amount awarded.

Emotional Distress and Mental Anguish

Injuries can also cause emotional distress and mental anguish, which can have a significant impact on an individual’s quality of life.

Non-economic damages may compensate for these intangible losses, including anxiety, depression, post-traumatic stress disorder (PTSD), and other mental health issues resulting from the injury.

The court may consider medical records and mental health professional testimony when determining compensation.

Loss of Enjoyment of Life

Injuries can also significantly affect the victim’s ability to participate in activities they once enjoyed.

Compensation for loss of enjoyment of life aims to make up for this loss and its impact on the victim’s overall well-being and emotional state.

The court may consider the victim’s age, hobbies, and other factors when determining the amount awarded.

Loss of Consortium

In cases where an injury causes a loss of companionship and support from a spouse or loved one, the accident victim’s surviving spouse may receive compensation for loss of consortium.

This compensation considers the loss of love, affection, and emotional support the victim once provided.

The court may consider the duration and nature of the plaintiff’s relationship when determining the amount awarded.

Loss of Society and Companionship

While loss of consortium typically applies to spouses, loss of society and companionship can extend to other family members or loved ones.

This category aims to compensate for the loss of close relationships and emotional support caused by an injury.

This type of non-economic damage is more common in wrongful death claims but may also apply in personal injury cases where the victim’s injuries have significantly impacted their relationships with others.

Permanent Impairments and Disabilities

Serious injuries can result in permanent impairments or disabilities, significantly affecting an individual’s daily life, self-esteem, and ability to earn a living.

These long-term consequences may include physical limitations, reduced quality of life, and other permanent changes.

Compensation for these non-economic damages aims to provide financial support for ongoing medical treatment, lifestyle modifications, and the impact on overall quality of life.

Scarring and Disfigurement

Serious injuries can result in visible scarring or permanent physical disfigurement, which can significantly impact an individual’s self-esteem and emotional well-being.

Non-economic damages may compensate for these changes in physical appearance and the emotional distress they can cause.

When determining the amount awarded, the court may consider factors such as severity, visibility, and location of scarring and disfigurement.

Punitive Damages in Personal Injury Cases

The court may award punitive damages in cases involving egregious misconduct or gross negligence on the part of the defendant.

Punitive or exemplary damages aim to punish the defendant and deter others from engaging in similar behavior.

Unlike compensatory damages, punitive damages are not intended to make up for a specific loss suffered by the victim but rather to act as a form of punishment and serve as an example to prevent extreme recklessness or intentional wrongdoing in the future.

The amount awarded for punitive damages can vary significantly and is often capped at a certain percentage of the compensatory damages awarded.

The court will consider factors such as the severity of the misconduct, the defendant’s financial resources, and the need for deterrence when determining the amount of punitive damages to be awarded.

In some cases, states have limits or restrictions on awarding punitive damages in personal injury cases.

Punitive damages are not applicable in every personal injury case.

The court only awards this type of damage when the defendant’s misconduct is deemed severe enough to warrant punishment.

Common Personal Injury Case Types

A personal injury claim can arise from a wide range of incidents.

In most cases, these incidents involve bodily harm.

Some of the most common instances in which victims may seek personal injury damages include:

• Car accidents
• Workplace injuries
• Slip and fall accidents
• Product liability
• Medical malpractice
• Assault and battery
• Nursing home abuse
• Toxic torts

Personal injury claims are not limited to these examples, and victims may seek damages for a wide range of incidents resulting in emotional and mental harm.

How Are Personal Injury Damages Calculated?

The calculation of damages in a personal injury case takes into account various factors, including the severity of the injury, its impact on the victim’s quality of life, its long-term effects, and the victim’s age, occupation, and earning capacity.

Calculating Economic Damages

Economic damages are typically calculated by adding up the victim’s actual expenses and losses.

These include:

• Medical bills you already paid
• Lost wages due to time off work for recovery
• Loss of future income or earning potential due to a disability or permanent impairment
• Property damage, such as damage to your vehicle in a car accident
• Other out-of-pocket expenses related to the injury, such as transportation costs for medical appointments

These damages are usually relatively straightforward to calculate as they involve tangible losses that are easily quantifiable.

Calculating Non-Economic Damages

While economic damages can be calculated based on actual financial losses, quantifying non-economic damages poses more significant challenges.

These damages are subjective and can vary significantly from case to case.

There are two general methods used to calculate non-economic damages: the multiplier method and the per diem method.

The Multiplier Method

The multiplier method involves multiplying the economic damages by a specific number, typically between 1.5 and 5.

The multiplier used will depend on the severity of the injury, with more severe injuries receiving a higher multiplier.

For example, the court decided to use a multiplier of 4 because the victim suffered a severe injury that resulted in significant physical and emotional distress.

If the total economic damages amount to $100,000, the non-economic damages would be calculated by multiplying $100,000 by 4, resulting in an award of $400,000 for non-economic damages.

The Per Diem Method

The court may use the per diem method if the victim suffered injuries with a shorter recovery period.

Per diem means “per day” in Latin, and as the name suggests, this method involves calculating a daily rate for the victim’s pain and suffering and multiplying it by the number of days they have or will endure the injury.

This method usually uses the victim’s daily earnings or expenses as a basis for the daily rate.

If the victim’s daily salary is $200 and they cannot work for 100 days due to their injuries, the court may award $20,000 for non-economic damages ($200 times 100).

The court may decide to increase or decrease this amount based on the severity of the injury and its impact on the victim’s quality of life.

Challenges in Calculating Damages

Calculating damages in a personal injury case can be complex, as it involves determining the value of intangible losses such as pain and suffering.

Insurance companies may dispute the severity of the victim’s injuries or their impact on their quality of life, making it challenging to reach a fair settlement.

Having an experienced lawyer with knowledge and experience in personal injury law is crucial to advocate for fair compensation for all damages suffered.

Legal Process of Claiming Personal Injury Damages 

The legal process for claiming damages in a personal injury case typically involves multiple steps.

These steps can include:

• Consulting With a Personal Injury Lawyer: The first step in pursuing a personal injury claim is to consult with an experienced lawyer. They can evaluate your case, advise you on its strength, and determine the potential damages you may be entitled to.
• Gathering Evidence: To support a personal injury claim, it is crucial to gather evidence such as medical records, police reports, witness statements, and any other relevant documents or information related to the incident. This evidence will help establish the extent of the victim’s injuries and their impact on their life.
• Filing a Complaint: The victim’s lawyer will prepare and file a complaint against the at-fault party. This document outlines the details of the incident, the injuries the victim sustained, and any other relevant information needed to initiate legal action.
• Settlement Negotiations: In many cases, personal injury claims are settled outside of court through negotiation between the victim’s lawyer and the at-fault party’s insurance company. If both parties can reach an agreement on fair compensation, they may settle the case without going to trial.
• Going to Trial: If settlement negotiations are unsuccessful, the victim’s lawyer may take the case to court. During a trial, both parties present their arguments and evidence, and a judge or jury ultimately decides the outcome of the case.

Seeking Legal Assistance

Given the complexities involved in personal injury claims and the potential for disputes with insurance companies or defendants, seeking assistance from an experienced personal injury lawyer is highly recommended.

An experienced personal injury attorney can provide expert legal representation, seek maximum compensation, and ensure that the injured party’s rights are protected throughout the legal process.

Personal injury lawyers can help victims hold the defendant liable for their actions and pursue proper compensation for all damages suffered.

They can also assist with calculating and presenting damages effectively, ensuring that the victim receives fair compensation for all losses.

TorHoerman Law: Experienced Personal Injury Lawyers

Understanding personal injury damages is crucial for individuals seeking compensation for injuries caused by others’ negligence or wrongful actions.

You can pursue fair and full compensation by recognizing the types of damages available, the methods used to calculate them, and the legal process for claiming them.

The legal team at TorHoerman Law specializes in personal injury law and has a wealth of experience in successfully helping clients claim damages for their injuries.

Contact us for a free consultation.

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