What is the true measure of getting fairly compensated in a personal injury claim? While most people are comfortable settling for economic damages like medical expenses and lost wages, and looking to leverage the full extent of the law also goes for non-economic damages like pain, suffering, and psychological trauma.
Unfortunately, non-economic damages can be difficult to prove. Most states also have a cap on non-economic damages. For instance, Oregon limits the amount of non-economic damages to $500,000. What’s even more concerning is most people don’t even get close to that amount. The mere fact that these damages are unquantifiable means the court has to come up with somewhat unusual means of calculating non-economic damages.
This begs the question: how can you increase your chances of getting fairly compensated for non-economic damages? How are they even calculated in the first place?
In this guide, we explore non-economic damages, evaluating everything from what they are, the factors that affect the value of your claim, how they’re calculated, and how to improve your chances of getting non-economic damages.
MORE NEWS: Experience AZ: 10 Arizona restaurants with an amazing view
What Are Non-Economic Damages?
Non-economic damages are intangible or non-monetary damages that result from injury or harm caused by another person’s negligence or willful harm. Unlike economic damages, which can be quantified by specific sums of money, non-economic damages are centered around the subjective or emotional damages suffered by the victim.
Some of the most common non-economic damages include:
Pain and suffering: This includes the distress, physical discomfort, and anguish experienced by the victim as a result of their injuries. The court considers both the immediate pain following the injury and the ongoing discomfort endured by the victim during the recovery process.
Diminished quality of life: This reflects the victim’s reduced ability to engage in activities that previously brought them joy and fulfillment. It can include everything from the loss of hobbies and recreational activities to engaging in social interactions due to limitations caused by the injuries.
Disfigurement: If the injury results in permanent scars or lasting physical changes, the victim may seek compensation for the effect on their appearance.
Loss of consortium: Non-economic damages aren’t just limited to the victim. In certain situations, spouses and close family members may seek damages for the loss of affection, companionship, or sexual relations due to the victim’s injuries.
How Are Non-Economic Damages Calculated?
Different jurisdictions and insurance companies use their own formulas to calculate your portion of non-economic damages in a personal injury settlement. In most cases, your attorney will use one of the more common methods to estimate your potential reward.
Some of the most common formulas used are:
The Per-Diem Formula
The per-diem formula works much like lost wages. Essentially, the court or insurance company issues you a dollar value based on your daily earnings. You will receive this rate for every day the injury keeps you from doing your job.
Say, for instance, you broke a leg in an accident, and the injury makes you unable to work for 100 days. Let’s take your annual salary as $40,000.
In that case, according to the per-diem rate, your daily earnings are $160 for the 250 days you work in a year. Since you’re unable to work for 100 days due to the pain and suffering arising from your injuries, you will be awarded $16,000 in non-monetary compensation damages.
The Multiplier Method
In the multiplier method, the insurance company assigns you a number or multiplier based on the severity of your injuries. The number typically falls between 1 and 5. Essentially, the more severe your injuries, the higher your assigned number or multiplier.
When calculating the value of your economic damages, the court or insurance company multiplies the total value of your economic damages by the multiplier. For instance, if you break a hip and experience $50,000 in economic losses and receive a multiplier of 3, your pain and suffering damages will be set at $150,000.
What Factors Affect the Value of Non-Economic Damages?
Several factors come into play when determining the value of non-economic damages. Since they are intangible in nature, the factors that determine the total value of your compensation are also somewhat subjective.
Some of the most notable factors that could affect the value of your claim include:
The severity of the injury: Both the per-diem and multiplier methods have one thing in common: the more severe your injuries, the higher the compensation. This is because severe injuries typically require a longer recovery period and have a more dramatic impact on your overall lifestyle.
Jurisdiction: Different states have unique interpretations of how non-economic damages should be calculated. Some states also have caps on the maximum amount you can be awarded.
Jury perception: The jury’s perception of the plaintiff can have a dramatic impact on the amount of non-economic damages awarded. Everything from your credibility to the at-fault party’s conduct can influence the jury’s decision.
How To Improve Your Chances of Getting Non-Economic Damages
Most jurisdictions allow you to sue for non-economic damages. However, like with other personal injury cases, you need to prove that you are indeed suffering and the defendant is the sole cause of that suffering.
Here are a few ways to do it.
Document Everything
If you’re taking someone to court over an injury, you probably have medical records to back up your claims. However, when suing for non-economic damages, you also need to show how the injuries affect the quality of your life. This can include any pain, emotional struggles, and notable changes to your lifestyle.
Get an Expert Witness
Expert witnesses are professionals in relevant fields. They can help explain how your injuries affect the quality of your life. For instance, a doctor can testify that your injuries result in long-term pain and suffering, while a psychiatrist can attest to the emotional distress arising from your injuries.
Don’t Downplay Your Pain
A personal injury hearing isn’t the best place to be a ‘strong’ person. Do not downplay your pain. Similarly, you shouldn’t exaggerate it either, as the jury might see through your exaggeration and come to the conclusion that you are lying to the court.
Get the Compensation You Deserve
Everyone deserves fair compensation, and that includes non-economic damages since they reflect the injury’s impact on a victim’s quality of life. While they may be difficult to prove, having the right evidence at hand and proper representation could significantly improve your chances of getting fairly compensated.
