How Are Damages Calculated in Personal Injury Cases?
Personal injury lawyers use the term ‘damages’ in reference to the compensation paid to the affected party for the losses incurred as a result of the negligence of the other party. This has become an essential part of every personal injury claim and may be the determinant of whether the matter is settled out of court or not.
In Salt Lake City, personal injury law is applied in different cases such as car accidents, slip and fall accidents, work injuries, and medical malpractice. Utah’s laws of comparative negligence directly influence compensation for damages awarded to victims.
An experienced Salt Lake City personal injury attorney can help those injured with insurance settlements and obtaining proper compensation for medical expenses, loss of income, and other damages.
What Are Economic Damages, and How Are They Measured?
Economic damages, also referred to as ‘special damages,’ are the tangible economic losses that can be calculated with a reasonable degree of specificity. Attorneys prove economic damages through documents such as medical bills, invoices, pay stubs, and receipts. Typical types of economic damages include:
- Past, present, and future medical expenses
- Lost wages
- Lost earning capacity
- Costs related to rehabilitation
- Property damage
Estimates are made by experts such as physicians or economists.
How Are Non-Economic Damages Calculated?
Non-economic damages cover intangible damages that cannot be assigned a fixed value or amount. Such damages involve:
- Pain and suffering
- Mental anguish
- Distress
- Loss of enjoyment of life
- Loss of consortium
This also takes into account the extent of injury, recovery time, permanency of damage, or the degree to which the injury interferes with daily life. Unlike economic damages, non-economic damages are always subjective, often being the most disputed part of any injury claim.
What Is the Role of Medical Evidence in Damage Calculations?
Medical evidence plays an integral part in establishing economic as well as non-economic damages. Treatment records, images, and prognosis statements determine the extent, severity, and period of injury.
Regular and consistent treatment increases credibility, proving direct causation from the accident to the injury. Inconsistencies in treatment, as well as disregard for the recommendations of healthcare providers, could imply the injury is not as severe as claimed or is unconnected to the event.
How Do Insurance Companies Calculate Settlement?
Insurance companies depend on their own methods of estimation when determining claim amounts. One such method entails estimating total economic damages and multiplying the figures by a factor, usually between 1.5 and 5.
The factors that affect this figure are the degree of injury, recovery times, permanency, comparative fault, and insurance coverage. Although this is not conclusive evidence during trials, it often helps make determinations during settlements.
Is a Party’s Fault a Factor in Damages?
Yes. In many places, the amount of damages is also adjusted according to the principle of comparative fault. If a person is found partly liable for the accident in which they have suffered injuries, the compensation is reduced accordingly.
For instance, in the event a plaintiff is deemed to be 20 percent responsible, their total award may be reduced by such a figure. In other jurisdictions, crossing a given fault threshold may result in the prevention of recovery.
Key Takeaways
- Economic damages are calculated based on tangible financial losses.
- Non-economic damages provide compensation for pain and suffering and the effects on quality of life.
- Medical records are critical and support allegations of damages.
- Comparative fault may lessen or prevent payments.