What Are Non-Economic Damages? Everything You Need to Know
You have a right to claim damages if another party causes injury to you or your family member. Damages in a personal injury case fall into two categories: economic and non-economic damages. Economic damages such as medical bills or lost wages are easy to calculate. However, non-economic damages are hard to prove. Yet, these damages play a crucial role in ensuring you’re fully compensated for the pain and emotional toll the injury has caused.
So, what exactly are non-economic damages, and how do they impact your case? Read on to find out.
What Are Non-Economic Damages?
When someone is injured due to another party’s negligence, the harm they experience isn’t always just physical or financial. They may experience damages like emotional pain, loss of enjoyment in life, or a decrease in quality of life. These damages are pretty difficult to calculate.
Think of it this way: if you were in an accident and could no longer participate in activities you loved, or if the trauma of the event left you with anxiety or depression, those aren’t things you can easily put a dollar figure on.
Unlike medical bills or lost wages, which are straightforward and easy to calculate, non-economic damages are more subjective. They vary based on your unique circumstances, the severity of the injury, and how the incident has affected your life.
What Are Examples of Non-Economic Damages?
There are different types of non-economic damages that can be included in a personal injury case. These are as follows:
Pain and Suffering
Simple activities can become unbearable if you’re dealing with constant physical pain from an injury. Whether it’s chronic back pain, migraines, or discomfort from surgeries, this suffering largely affects the quality of your life.
Emotional Distress
If you’ve been through a tragic car accident or a life-altering injury, you might face anxiety, depression, or even post-traumatic stress disorder (PTSD). Emotional distress can disrupt your relationships, your sleep, and even your ability to work.
Loss of Enjoyment of Life
What happens if you can no longer participate in the activities that you once loved? Maybe you loved hiking, dancing, or playing with your kids, and now those moments feel out of reach. Losing the ability to enjoy these parts of life is a significant form of non-economic damage.
Loss of Companionship
An injury can affect your relationship with your spouse. Whether it’s a loss of companionship, emotional support, or intimacy, you can claim compensation for these damages.
How Do You Calculate the Value of Non-Economic Damages?
Figuring out the value of non-economic damages can be quite a challenge. Since these damages aren’t tied to straightforward bills or receipts, calculating their worth requires a mix of methods, judgment, and understanding the unique impact on your life. Here’s how it’s typically done.
The Per Diem Method
In the per-diem method, you will be assigned a dollar value depending on how much you earn daily at your job.
For instance, if your lawyer or insurance adjuster assigns $200 per day to your pain and suffering, and you’ve dealt with it for 100 days, your damages would be calculated as:
$200 x 100 days = $20,000
The daily rate depends on factors such as your income or how much your life has been disrupted.
The Multiplier Method
One of the easiest ways to calculate non-economic damages is by using the multiplier method. This approach starts with the total of your economic damages, like medical bills and lost wages, and multiplies that amount by a number between 1.5 and 5.
The multiplier reflects the severity of your experience. For example:
- If you broke your arm but healed quickly, the multiplier might be on the lower end, around 1.5.
- If you suffered life-altering injuries with ongoing pain and emotional distress, the multiplier could be closer to 4 or 5.
It’s not quite accurate, but it gives an estimate based on how serious your injuries are and their lasting effects.
Understanding the Individual Impact
No two people experience pain or suffering the same way. How the injury has affected your relationships, career, hobbies, or mental health matters in determining a fair value. Lawyers and insurers often look at:
- Severity of the injury: How serious and long-lasting are your injuries?
- Your personal circumstances: Has the injury changed your ability to work, enjoy hobbies, or spend time with family?
- Emotional testimony: Sometimes, your own words or those of your loved ones about how the injury has impacted your life play a role.
The Role of Expert Opinions
Sometimes experts, like doctors, psychologists, or vocational specialists, are brought in to help quantify the intangible losses. For example, a psychologist might testify about the depth of your emotional trauma, while a vocational expert can show how your injuries limit your ability to earn a living.
Limits and State Laws
Some states cap non-economic damages, especially in cases like medical malpractice. If you’re pursuing compensation, it’s essential to know whether there’s a legal limit to how much you can receive in your case.
How Do You Make Sure That the Non-Economic Damages Amount Is Fair?
When it comes to non-economic damages, it can be difficult to determine whether it’s fair or not. That’s because you can’t measure the pain, emotional distress, or loss of enjoyment you’ve experienced. But that doesn’t mean you can’t ensure the compensation is fair and appropriate. Here are steps you can take to ensure that you get what you rightly deserve:
- Document how your life has changed.
- Consultprofessionals like doctors, therapists, and life-care planners to support your case.
- Understand the methods for calculating non-economic damages.
- Compare similar cases.
- Work with an experienced attorney.
Non-Economic Damages Are Very Important
When you’ve been hurt because of someone else’s actions, you shouldn’t just be compensated for the money you lost or the medical bills you face. You should also seek compensation for the pain, frustration, and changes to your life that you can’t easily measure. For the best outcome,you should hire a good attorney who will make sure that you’re compensated fairly for both economic and non-economic damages you suffered in the accident.
