When you’ve been injured due to someone else’s negligence, understanding how damages are calculated is essenial for ensuring you receive fair compensation. Personal injury damages are typically categorized into economic and non-economic damages, each calculated differently based on specific factors.
Economic Damages: Clear and Measurable
Economic damages, sometimes called special damages, refer to measurable financial losses directly tied to your injury. Calculating these damages is generally straightforward, as they involve documented financial expenses. Common examples include:
- Medical Expenses: This includes hospital bills, medication costs, surgeries, physical therapy, and any future medical treatment necessary due to your injuries.
- Lost Wages: If you’re unable to work following your injury, you may recover compensation for lost income. This also includes potential future earnings if your injuries prevent you from returning to your previous job or limit your earning capacity.
- Property Damage: Costs to repair or replace damaged property, such as vehicles in car accidents, are also included in economic damages.
Non-Economic Damages: Intangible and Subjective
Non-economic damages, also known as general damages, address losses that aren’t directly financial but significantly affect your quality of life. These damages can be harder to quantify, but they’re critical to obtaining comprehensive compensation. Typical non-economic damages include:
- Pain and Suffering: Compensation for physical pain, emotional distress, and ongoing discomfort resulting from the injury.
- Mental Anguish: Covers anxiety, depression, PTSD, and other psychological impacts stemming directly from your injury.
- Disfigurement: Covers injuries that alter or deform a person’s physical appearance such as scarring, burns, or loss of limbs.
- Loss of Consortium: Compensation for the negative impact your injuries have had on your relationship with your spouse or family.
Calculating Non-Economic Damages
While there’s no exact formula, non-economic damages are often calculated based on the severity of your injuries, how much your life has changed, and precedents set in similar cases. Attorneys, insurance companies, and jurors frequently use methods such as:
- Multiplier Method: Economic damages are multiplied by a number (typically between 1.5 and 5) based on the severity of the injury.
- Per Diem Method: A daily rate is assigned to your pain and suffering and multiplied by the total number of days you’re affected by the injury.
- Historical Data: A review of what jurors have awarded in similar situations in the past.
Punitive Damages: Special Considerations
In some cases, punitive damages may also apply. These damages aren’t calculated based on your losses; instead, they aim to punish the at-fault party for egregiously negligent or intentional actions. Courts award punitive damages to discourage similar conduct in the future and to deter others from similar conduct.
Importance of Accurate Damage Calculation
Accurately calculating damages is critical, as miscalculations can lead to under-compensation. Insurance companies often attempt to minimize these amounts to lower their payouts. Working with an experienced attorney helps ensure all damages—economic, non-economic, and punitive—are accounted for and accurately valued.
When choosing an attorney, it is important to choose one with knowledge and experience. Perkins & Perkins has a proven track record of representing plaintiffs in a variety of personal injury cases. Our abilities are demonstrated by an $18,111,232.00 verdict we secured in 2022, which was recognized as the largest construction injury verdict in Texas, that year.
Perkins & Perkins offers free consultations and operates on a contingency fee basis for injury cases. This means that you pay nothing unless we recover damages for you. With our proven knowledge and experience, we stand ready to help you. Contact us today for a consultation to discuss your options and take the first step in claiming justice for a loved one.
