In the event of an accident, victims’ focus is usually on economic losses, such as loss of income and medical costs. That said, other factors such as pain and suffering, emotional anguish, and loss of capacity to enjoy life can be compensated as well.
It is not always easy to determine these damages because there is no definitive way to define their cost. Hiring the best personal injury lawyers is the only way to secure compensation for these losses, as they will know ways to calculate economic losses.
Introduction to Non-Economic Damages
As for non-economic damages, they focus on the non-quantifiable factors caused by injuries sustained. They cover the following:
- Pain and Suffering: This refers to the actual physical and psychological trauma as a result of the injury.
- Emotional Distress: These refer to feelings of stress or emotional pain caused by worry, sadness or shock.
- Loss of Consortium: Effect on interpersonal relations; mainly regarding the severing of close relationships.
- Loss of Enjoyment of Life: Lessening of pleasure derived from normal activity.
They are very hard to measure due to the fact that they are very subjective.
Common Methods to Calculate Non-Economic Damages
There are various ways in which courts, as well as insurance companies, measure non-economic damages. Some of the greatest measures in terms of popularity include:
Multiplier Method
The multiplier method is one of the most favored methods of determining non-economic damages. It involves multiplying the total economic damages (such as medical bills and lost wages) by a number, typically between 1.5 and 5. More wounds imply higher degrees of the multiplier, which is why the multiplier is allocated as a function of the injury’s magnitude.
For example, if there are $50,000 in economic damages with a multiplier of 3, the total non-economic damages awarded would be $150,000. Factors such as the types of injuries, the extent of pain and suffering, and the future impact on the victim’s life determine the fixed multipliers.
Per Diem Method
This method approximates the victim’s pain and suffering by providing a daily monetary value. The amount is then multiplied by the number of days the pain and suffering are expected to last. This approach is simple and especially applicable when estimating the length of the pain and suffering is possible.
For example, where the per diem is set at $200, but the victim is assumed to suffer for 300 days, the non-economic damages would then be $60,000 on a per diem of $200. There are without a doubt some advantages in establishing a daily rate, but this can also lead to problems because of bias in the parties getting involved.
Comparative Analysis
This method uses verdicts rendered in trials of other cases of personal injury with similar features to the current case. In this case, attorneys and insurers form a reasonable figure for non-economic damage awards by picking previous cases of similar injuries and circumstances. Such a similarity approach is consistent with reliance on past cases and, therefore, less prominent in jurisdictions where there is variability in judicial outcomes.
Factors Affecting Non-Economic Damage Calculations
There are a number of variables that determine the quantum awarded under the non-economic loss damages in a personal injury claim. These are the following:
- Severity of the Injury: More severe injuries, on the other hand, mean that higher non-economic damages are likely to be awarded.
- Impact on Daily Life: An injury translates to damages, especially where the victim is unable to perform duties that are central to their everyday life.
- Age of the Victim: Younger victims would attract higher damages since their suffering is prolonged.
- Jurisdiction: Different laws apply in different states regarding the number and the amount of these pain and suffering damages.
- Credibility of Testimony: Non-economic damages are determined through the use of the victim’s testimony, as well as medical and expert witness testimony.
Conclusion
It is evident that non-economic damages are very difficult to assess. The average person usually wants to know how much will be received in damages. This process, unlike others, has different ways for various jurisdictions.
