How Are Damages Assessed in a Personal Injury Case? - Nationwide Personal Injury Lawyers | Bey & Associates, LLC (2024)

Calculating damages is one of the most important steps of any personal injury case. Assessing damages answers the question: What is my personal injury case worth?

In order to fully and accurately assess damages, a personal injury lawyer will need to allocate significant time to investigating the cause of the incident and its effect on your life. A strong claim will be able to prove that another party’s negligence caused your injuries and will provide enough evidence to support your right to maximum compensation.

Let’s look in more detail at how damages are assessed in a personal injury case.

How Damages Are Calculated in a Personal Injury Case

The term “damages” in personal injury law refers to the financial award the at-fault party owes to the injured party for causing them harm. To assess damages, an attorney will add up all the losses (both financial and non-financial) the plaintiff has suffered as a result of their personal injury.

Damages are assessed based on certain factors related to your case, including:

  • What caused the accident
  • The actions of the at-fault party
  • The severity of your injuries
  • How your employment and future employment were impacted
  • If you suffered permanent disability
  • The pain, suffering, and emotional trauma you endured
  • If fatality was involved
  • Whether your case settles out of court or proceeds to trial
  • Other factors

As you might guess, assigning an appropriate value to all of these things is a difficult task, one which requires experience and training. Personal injury lawyers with the most expertise, dedication, and skill are usually the ones who are successful in helping their clients obtain fair compensation.

Thinking about damages related to a personal injury case can be rather abstract. We’ll discuss a few examples of damages in personal injury cases that can give you a better idea of what you may be entitled to in your own case.

Common Examples of Damages in Personal Injury Cases

Many people discuss damages as having only one type, but there are actually two separate types of damages that are awarded for different purposes:

  • Compensatory damages
  • Punitive damages

Compensatory Damages

Damages that are compensatory (intended to compensate the victim) are further broken down into two broad categories: economic damages and non-economic damages.

The economic category covers financial losses, while the non-economic category addresses non-tangible, non-financial injuries. You can think of compensatory damages as working to make the person whole again, to restore them to the health, emotional wellbeing, and financial security that was taken from them through another person’s negligence.

Examples of Economic Damages

Whether you’re discussing a car accident, slip and fall injury, medical malpractice, or other type of personal injury case, there are a few types of economic compensatory damages that are most common. These include:

  • Medical bills (including hospital visits, ambulance fees, doctor’s appointments, imaging and blood tests, physical therapy, prescription medications, medical devices, and other expenses)
  • Property damage (such as the cost to repair or replace a vehicle or other valuable personal items)
  • Lost wages (for the amount of time taken off work to recover, often including benefits that would have been accrued during that time period)
  • Lost earning capacity (if the injury caused a permanent disability that prevents a return to the same position or to a position of equal earning potential)
  • Transportation costs (such as a rental car or public transportation costs after vehicle damage, and gas or other transportation costs to doctor’s and specialist’s appointments)
  • Domestic services (including cleaning services, food delivery, child care, pet-sitting, in-home nursing care, and other services to help complete daily tasks after injury)

The economic damages in a wrongful death case may look somewhat different. Because a wrongful death claim is filed by surviving family members on behalf of a person killed by negligence, these damages cover different kinds of losses. Funeral and burial costs, expenses related to end-of-life services, medical expenses for attempts at life-saving care, lost inheritance, and lost financial support are common in wrongful death claims.

Examples of Non-Economic Damages

Unlike economic damages, non-economic damages cannot be assessed by adding up bills. Non-economic losses are much less concrete. Most personal injury attorneys employ a formula (such as the multiplier method or daily rate method) that helps put a numerical value on these life-changing losses.

Examples of non-economic damages in a personal injury case might include:

  • Pain and suffering
  • Loss of enjoyment of life
  • Disfigurement
  • Emotional anguish
  • Permanent disability
  • Damage to reputation
  • Inconvenience
  • Loss of consortium
  • Other emotional losses related to a loved one’s passing in a wrongful death case

A strong attorney-client relationship is particularly important when it comes to calculating non-economic damages. A trustful bond allows your legal representative to get a fuller image of how your life was impacted by your injury. And it allows you to feel more comfortable discussing some of the more personal and sensitive matters related to your injury.

For example, if you do not feel that you can speak candidly with your attorney, you may not be willing to open up about some of the mental health struggles you have suffered post-accident. Without knowledge of these damages, your legal counsel won’t be able to help you seek compensation for them.

Punitive Damages

The damages discussed above are compensatory damages, awarded with the goal of compensating what the plaintiff lost due to their injury. But there is another distinct category of damages that is applied for a different purpose. Punitive damages are awarded as a way to punish the defendant.

The goal of punitive damages is to deter the defendant (and others) from engaging in the same type of actions again in the future. It is a way to say: This behavior is wrong and will not be tolerated. In a way, punitive damages “make an example” of the defendant and, for this reason, are also called “exemplary damages.”

Punitive damages are rare in personal injury cases. Only a very small percentage of cases will award punitive damages to the plaintiff. These damages must be applied by the court and are reserved for instances of only the most extreme harmful behavior.

Each state has different laws governing when punitive damages may be applied. Many states also have laws that cap the maximum amount that can be awarded in punitive damages.

In Georgia, exemplary damages may only be applied when it can be proven by “clear and convincing evidence” that the defendant acted in a way that demonstrated “willful misconduct, malice, fraud, wantonness, oppression, or that entire want of care which would raise the presumption of conscious indifference to consequences.” Additionally, Georgia law caps most punitive awards at a maximum of $250,000, but there are several notable exceptions to this rule.

Punitive damages are not something you can seek on your own by filing an insurance claim. You will need to work closely with a Georgia personal injury lawyer to determine if they apply to your case.

A Personal Injury Lawyer Can Help You Assess Damages in Your Case

It’s not easy for a person without legal experience to assess the full value of their personal injury case on their own. And they should not be expected to. The role of a personal injury lawyer is to guide clients through complex legal matters—like calculating damages.

If you’re wondering how much your personal injury claim is worth, speak to a lawyer right away. The insurance company will always assign you a lower value than you deserve. If you want to make sure all your current, past, and future losses are covered, find an attorney who is willing to put in the effort to see that you get full and fair compensation.

Contact Bey & Associates Atlanta personal injury law firm for a free case evaluation today. There is no cost to learn how much your injury claim may be worth.

How Are Damages Assessed in a Personal Injury Case? - Nationwide Personal Injury Lawyers | Bey & Associates, LLC (2024)

FAQs

How Are Damages Assessed in a Personal Injury Case? - Nationwide Personal Injury Lawyers | Bey & Associates, LLC? ›

The extent of the physical and psychological injuries sustained is the primary determinant of compensation amounts. More severe injuries generally lead to higher compensation because they typically require more extensive medical treatment, and a longer recovery period, and result in greater pain and suffering.

How to assess damages in personal injury? ›

The extent of the physical and psychological injuries sustained is the primary determinant of compensation amounts. More severe injuries generally lead to higher compensation because they typically require more extensive medical treatment, and a longer recovery period, and result in greater pain and suffering.

How to calculate damages in personal injury cases? ›

There's no set formula to calculate damages. However, a general rule to discern the amount awarded is to combine your expenses and determine a value for your pain and suffering. A personal injury lawyer can help you determine the amount in both general and special damages that you deserve.

How to assess damages? ›

Once the flows, past and/or future, have been identified and assessed, the assessment of damages requires a valuation of the net worth that the victim would have had in the absence of default, with the difference with its actual net work (therefore, in the presence of default) constituting the lost profit.

How does a court determine the amount of damages to be awarded? ›

Damages are imposed if the court finds that a party breached a duty under contract or violated some right. The sum of money included in the damages can be compensatory damages that are calculated based on the harmed party's actual loses, or punitive damages intended to punish the wrongdoer.

How do you calculate damages for emotional distress? ›

Once the attorney has argued for emotional distress damages, he or she will then calculate a settlement amount using what's called a “multiplier method.” It works by adding up all the tangible or economic damages, like medical costs and lost wages, and then multiplying that sum by a given number, usually between 1.5 ...

How do you quantify damages? ›

Losses should be quantified at the amount which should be paid to the claimant to put it in the same position that it would have been but for the wrongful act. The claimant has to prove its losses on the balance of probabilities.

How much compensation do you get for personal injury? ›

The amount of compensation that can be claimed for general damages depends on the type of injury and suffering experienced, and the severity of it, as well as how long quality of life is affected. Therefore, there isn't a 'one sum suits all' approach to general damages; every single claim is different.

How to compute for damages? ›

The computation can be broken down into several steps as follows:
  1. Define the damage period;
  2. Estimate lost revenues from sales for that period;
  3. Subtract costs associated with lost revenues;
  4. Subtract net profits from efforts made to mitigate losses;
  5. Express lost profits in present value terms;
Jan 16, 2024

How do you calculate compensatory damages? ›

When calculating compensatory damages, courts will often look at the fair market value of destroyed/damaged property, lost wages/income, and necessarily incurred expenses.

What are the four types of damage assessment? ›

Structural loss is evaluated on 4 criteria:
  • Destroyed: total loss, permanently uninhabitable.
  • Major: uninhabitable, extensive repairs required that will take more than 30 days to complete.
  • Minor: uninhabitable, repairs can be completed in less than 30 days.
  • Affected: no structural damage, habitable without repairs.

What is the damage assessment process? ›

Damage assessment is the process of determining the location, nature, and severity of damage sustained by the public and private sectors after a disaster. The typical damage assessment estimates the losses and the impacts of those losses on the affected individuals and communities.

What are measurable damages? ›

Also known as “economic damages“, special damages cover the measurable financial losses stemming from an injury. This can range from medical bills, rehabilitation costs, and lost wages to property damage.

How to calculate damages for personal injury? ›

The amount of compensation in a personal injury claim is determined by considering several factors including the severity of the injury, the impact on your life and work, medical expenses incurred, future care needs, and loss of earnings.

What is the formula for personal injury settlements? ›

The Damages Formula

The adjuster will multiply the medical special damages number by one and a half to three times if the injury is minor and up to five or more times if the injury is especially deliberating and long-term. After this number is calculated, any income lost as a result of the injury will be added.

What are emotional distress damages? ›

What are Emotional Distress Damages? Emotional distress damages are designed to compensate you for the psychological impact your injury has had on your daily life. The list of manifestations of emotional distress is long and varied. Sleep loss, anxiety, fear—these all fall under the umbrella of emotional distress.

What are the principles for assessing damages? ›

In a claim for damages, the court considers two main factors or matters; (a) remoteness of damages (i.e. the proximate cause of the breach) and (b) the measure of damages (i.e. the quantum or amount to be awarded).

What is the appropriate measure of damages? ›

The appropriate measure of damages will be determined by the circ*mstances of the claim being litigated and the remedies sought by the parties, and will principally be determined by: The nature of the wrongful conduct; and/or.

How do you evaluate an injury claim? ›

Injury evaluation requires an analysis of factors such as medical bills, surgeries, treatments, medications, medical devices, live-in care, disability costs, the nature and extent of your injuries, physical pain, your medical history, your age, and your occupation.

How are general damages assessed? ›

General damages will be calculated based on the level of pain and suffering you have experienced as a result of your personal injury or illness. Medical evidence will be used to support this element of your claim.

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