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 lawyer can help you assess both the economic and non-economic losses suffered. The severity of the injury, the degree of fault the party being sued is responsible for, the extent of medical treatment needed, the impact the victim’s injury has on life and employment, the prognosis, and the evidence of the event can all be considered when damages are calculated.
Your first question might be, “What are economic damages vs. non-economic damages?”
Types of damages
Personal injury lawsuits are different from workers’ compensation cases in that they account for more than just lost wages and medical bills, which are also known as economic losses. Personal injury lawsuits also cover non-economic losses, such as pain and suffering.
Methods of calculation
A couple common methods of calculation when trying to put a number on how much someone owes you for a personal injury you suffered, are the multiplier method and the per diem method.
The multiplier method involves multiplying the economic damages by a factor that reflects the severity and impact of the injury on that person’s life. For example, let’s say someone’s injury cost them $10,000 in economic damages, and an attorney thinks the severity and impact— on a scale of 1.5 to 5— is about a 3.
The multiplier method, once applied, would calculate those damages to be about $30,000. The purpose of this method is to put a dollar value on pain and suffering, which is not always easy to do.
Note that the jurisdiction matters when calculating damages. The laws of each state or region can significantly impact the type and amount of compensation a victim, or plaintiff, can recover. Sometimes there are limits (also known as caps), rules on comparative negligence (reduced compensation if the victim is partially responsible), and statutes of limitations (time limits).
The per diem method, however, assigns a daily dollar amount to the pain experienced by the injured person and multiplies that by the number of days that person is expected to endure pain. “Per diem” translates to “per day” in Latin. It quantifies suffering based on duration.
The daily dollar amount is based on things like severity, impact, and medical assessments. One example is if your daily dollar amount to the pain you suffer is $100, and you’re expected to be in pain for about a year, that would amount to $36,500. These methods can be used by personal injury lawyers or insurance companies to calculate damages.
Of course, critics could argue these methods are too simplistic for the complexities of personal injury cases. However, they can be helpful in trying to calculate something that isn’t always easy to measure.
It is important to note that there is no single formula that “works” every time. Each case is evaluated based on its unique circumstances.
Here are some factors that may increase or decrease your final settlement amount:
- Medical records
- Witness statements
- Age of the injured party
- Severity, duration, and impact of injury
- Whether or not the victim was partially at fault
- Likelihood of future complications or disabilities
Why does age matter? This influences factors like life expectancy, pre-existing conditions, potential future income loss, and the duration of the pain and suffering. For instance, a young plaintiff has so many more years ahead of them (statistically speaking) to lose out on money and feel the injury.
Someone who is about to retire, for example, won’t lose out on as much income. However, older people may have a harder time recovering from an injury. Some jurisdictions consider a concept called the “Golden Years Doctrine” where an older individual’s reduced ability to adapt to an injury may be taken into account, potentially leading to a higher settlement.
Why does it matter if the victim is partially at fault? Some states take that into account. Arkansas, in particular, uses a modified comparative negligence rule for personal injury cases. This means that if the victim is partially responsible, they can only pursue compensation if they are less than 50% at fault.
However, the amount they receive will be reduced in proportion to their share of fault. For example, if you were in a car accident and the jury determined that you were 30% responsible and the other driver was 70% responsible, you could collect 70% of your damages.
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 personal injury attorney can help you gather evidence, assess damages, write a demand letter, negotiate a settlement, mediate between you and the “other side,” communicate with the insurance company, meet deadlines, and represent you in court if it comes to that.
The Law Offices of Craig L. Cook can help you with the various aspects of a personal injury case to maximize your compensation. We practice in these types of lawsuits, and we hope to answer your questions once you book a free consultation with us.
We are happy to represent you!
