When someone is injured, the cost of care can include more than medical treatment or lost wages. Injuries can alter a person’s daily routines and habits, affecting their emotional state and relationships. There is some hope for victims in the form of non-economic damages, which compensate for these losses.
Non-economic damages are often the primary factor in settling many personal injury claims, as non-economic damages compensate an injured victim for their pain and suffering, anxiety, stress, and loss of pleasure in life following an accident. In fact, nearly 20% of people who sustain serious injuries in an accident will have post-traumatic stress disorder, according to the National Center for PTSD, indicating that injuries without physical symptoms can be severe and significant.
What Are Non-Economic Damages?
Non-economic damages provide compensation for losses that can be difficult to determine in monetary terms. Conversely, economic damages have a clear monetary value for the plaintiff and are easy to prove by presenting evidence such as medical bills or pay stubs.
For example, even though the surgical procedure itself is an itemized experience, and the total cost can be quantified from the receipts, the pain you are likely to experience from the surgery does not have a designated number in the same sense. Non-economic damages provide a means to compensate victims for these real-life struggles.
Examples of Non-Economic Damages
Pain and suffering
Pain and suffering damages compensate you for the physical pain and ongoing discomfort associated with your injury. For example, if you are suffering from back pain related to injuries from a car crash, even if the medical bills are paid in full, you may still be suffering on a regular basis.
Emotional distress
Sometimes accidents can cause anxiety, depression, and PTSD. The National Center for PTSD reports that car accidents account for some of the most prevalent trauma-related mental health problems in the United States.
Loss of Consortium
This refers to damage in relationships with close family members, friends, or significant others. If the injury prevents a person from being a supportive and nurturing partner or an involved parent, then the family suffers damage too.
Loss of Enjoyment of Life
Injuries can also prevent or reduce a person’s enjoyment or ability to participate in activities or hobbies they once cherished. For example, a person who loved hiking in a national park but is now unable to walk a long distance would be an example of this type of loss of enjoyment of life.
Disfigurement and Disability
This category of damage includes disfigurement, permanent brain or neurological injuries, and permanent loss of mobility. While disfigurement alters a person’s appearance, disability can negatively impact a person’s opportunities and their self-confidence.
How Do Courts Calculate Non-Economic Damages?
There aren’t any direct value associated with non-economic damages as it can change based on the person’s experience and the situation involved. Courts usually use one of two methods:
- Multiplier Method: Damages (like the medical bills incurred) will be multiplied by a factor generally between 1.5 and 5 based on the severity of the injury.
- Per Diem Method: The court will determine a per day dollar amount for the pain and suffering and multiply it by the anticipated time the victim will suffer.
The following factors affect the amount awarded:
- The severity of the injury.
- The duration of the recovery period.
- The impact on the mental health of the injured.
- The age and lifestyle of the injured victim.
- Testimony from doctors, family, and the wounded person.
The above variables assist courts in determining how such an injury has affected and changed someone’s life.
Limits on Non-Economic Damages
Some states impose limits, or “caps,” on non-economic damages. For instance, in California, under the Medical Injury Compensation Reform Act (MICRA), the non-economic damages in medical malpractice cases are capped at $350,000. Other states have different caps, and some states do not cap non-economic damages at all! It is essential to check state law, so you know what caps apply in your case.
Key Takeaways
- Non-economic damages allow for compensation for losses and events that money cannot easily measure (pain and physical discomfort, emotional distress or depression, loss of enjoyment of life).
- Non-economic damages are different from the damages associated with economic losses, like past or future medical bills and lost wages.
- The court can assign a value to non-economic losses using different methods, like multipliers or daily rates.
- The value of awarded non-economic damages is determined by factors including the severity or extent of the injury, lifestyle changes, mental health, and how the injury impacted their life.
