Note: Deondre’s story is a fictional scenario presented to help illustrate how the damages in a personal injury case may be calculated.
In personal injury cases, damages are calculated based on a variety of factors. A skilled personal injury lawyer can help you assess both the economic and non-economic losses suffered, ensuring all aspects of your hardship are considered.
The severity of the injury, the degree of fault the party being sued is responsible for, the extent of medical treatment needed, the lasting impact the victim’s injury has on their daily life and employment, the long-term prognosis, and the compelling evidence of the event can all be crucial considerations when damages are calculated.
Your first question might be, “What exactly are economic damages vs. non-economic damages?”
Types of damages
Personal injury lawsuits are distinct from workers’ compensation cases in that they account for more than just lost wages and medical bills, which are typically classified as economic losses. Personal injury lawsuits also cover non-economic losses, which are often more subjective but equally impactful, such as pain and suffering, emotional distress, and loss of enjoyment of life.
Methods of calculation
When attempting to assign a monetary value to the compensation owed for a personal injury, two common methods of calculation frequently employed are the multiplier method and the per diem method.
The multiplier method involves taking the total economic damages and multiplying them by a factor that reflects the severity and long-term impact of the injury on the person’s life. For example, if someone’s injury resulted in $10,000 in economic damages (like medical bills and lost income), and an attorney assesses the severity and impact—on a predetermined scale, perhaps from 1.5 to 5—as approximately a 3, then the multiplier method would calculate those damages to be around $30,000. The primary purpose of this method is to assign a fair dollar value to non-economic damages like pain, suffering, and emotional distress, which can be challenging to quantify objectively.
It’s important to note that the jurisdiction where the case is filed significantly matters when calculating damages. The specific laws and precedents of each state or region can profoundly impact both the types of compensation available and the maximum amount a victim, or plaintiff, can recover. This includes factors such as statutory limits (also known as caps) on certain types of damages, rules on comparative negligence (which can reduce compensation if the victim is partially responsible), and statutes of limitations (strict time limits within which a lawsuit must be filed).
The per diem method, however, takes a different approach by assigning a daily dollar amount to the pain and suffering experienced by the injured person and then multiplying that amount by the number of days the person is expected to endure such pain. “Per diem” is a Latin phrase meaning “per day.” This method effectively quantifies suffering based on its projected duration.
The specific daily dollar amount assigned is determined by various factors, including the intensity of the pain, the impact on daily life, and thorough medical assessments. For instance, if the daily dollar amount attributed to your pain and suffering is $100, and you are expected to be in pain for approximately one year (365 days), this method would result in a calculation of $36,500 for non-economic damages.
These calculation methods are often utilized by experienced personal injury lawyers and insurance companies alike to arrive at a preliminary estimate for damages.
Of course, critics might argue that these standardized methods are overly simplistic given the complex and highly personal nature of individual personal injury cases. Nevertheless, they serve as valuable tools for attempting to quantify aspects of suffering that are inherently difficult to measure.
It is crucial to understand that there is no single, universally applicable formula that “works” flawlessly every time. Each personal injury case is unique and must be meticulously evaluated based on its specific circumstances and supporting evidence.
Here are some additional factors that may increase or decrease your final settlement amount:
- Medical records: Comprehensive and well-documented medical records detailing the extent of injuries, treatments, and prognosis are paramount.
- Witness statements: Credible accounts from eyewitnesses can provide crucial support for your claim.
- Age of the injured party: This significantly influences factors such as life expectancy, potential pre-existing conditions, projected future income loss, and the anticipated duration of pain and suffering. For instance, a younger plaintiff typically has many more years ahead of them (statistically speaking) during which they could lose income and continue to experience the effects of their injury.
- Severity, duration, and impact of injury: The more severe and long-lasting the injury, and the greater its impact on your quality of life, the higher the potential damages.
- Whether or not the victim was partially at fault: This can dramatically affect the recoverable amount, as discussed below.
- Likelihood of future complications or disabilities: If the injury is expected to lead to ongoing medical needs, reduced earning capacity, or permanent disability, these factors will increase the damages.
Why does age matter so much? A plaintiff’s age influences not only their life expectancy and potential future income loss but also the duration for which they might experience pain and suffering. For example, a young plaintiff, with many more years ahead of them, stands to lose a greater cumulative amount of income and endure the injury’s effects for a longer period. This significantly impacts the personal injury claim and the calculation of personal injury damages, including medical expenses and general damages. In contrast, someone nearing retirement might not face as significant a loss of future income.
However, it’s also true that older individuals may face greater challenges in recovering from an injury. Some jurisdictions even consider a concept known as the “Golden Years Doctrine,” where an older individual’s reduced ability to adapt to an injury or diminished quality of life in their later years may be taken into account, potentially leading to a higher settlement for fair compensation.
Why does it matter if the victim is partially at fault? Many states operate under laws that consider the victim’s contribution to the accident. Arkansas, for example, utilizes a modified comparative negligence rule for personal injury claim cases. This means that if the victim is found to be partially responsible for the accident, they can only pursue fair compensation if their share of fault is less than 50%.
Furthermore, the amount of personal injury damages they receive will be reduced proportionally to their percentage of fault. For instance, if you were involved in a car accident and a jury determined that you were 30% responsible, while the other driver was 70% responsible, you would only be able to collect 70% of your total assessed damages, including medical expenses and general damages. This directly affects the fair compensation received for the personal injury claim.
Deondre’s story
Deondre works the night shift, and on his way home at 4:00 in the morning, he was hit by a drunk driver. Deondre suffered multiple injuries, and he got a personal injury lawyer to help him assess the damages.
Because Deondre was not at fault, he didn’t have to worry about the comparative negligence rule. He only had to worry about recovering from the accident and receiving compensation for the injuries caused by the car crash.
Deondre’s lawyer estimated that Deondre’s daily pain amounted to about $500, and he would be in pain for about 100 days. They sued the other driver for $50,000. Using the per diem rule helped them put a number on his losses.
An attorney’s role
A seasoned personal injury attorney plays an invaluable role in navigating the complexities of your case. They can help you meticulously gather and organize crucial evidence, accurately assess the full scope of your damages, draft a compelling demand letter, skillfully negotiate a fair settlement with insurance companies, mediate disputes between you and the “other side,” handle all communications with insurance providers, ensure all critical deadlines are met, and robustly represent you in court if a favorable settlement cannot be reached.
At The Law Offices of Craig L. Cook, our law firm is dedicated to assisting you with every aspect of your personal injury case to maximize your rightful compensation. We specialize in these types of lawsuits and offer a free consultation to discuss your case. We eagerly await the opportunity to answer all your questions when you book a free, no-obligation consultation with us. We are happy to represent you and fight for the justice you deserve!
