If a person is injured because of the actions or negligence of another party, there are various types of personal injury damages that can be included in the settlement. Not only do you deserve compensation for your financial losses, but there is often compensation available for emotional suffering as well. An experienced lawyer will help you receive fair compensation based on the circumstances of the accident and the severity of your injuries.
What are damages in a personal injury case? The purpose compensation for personal injury is to help you recover in all ways that your life was affected by the accident: financially, physically, and emotionally.
Not only should you receive money for the medical expenses, but lost wages also impact you financially. Additionally, compensation might be available for pain and suffering, and sometimes the court determines that punitive damages should be added to the total to punish the perpetrator.
Breaking Down Your Legal Options: Types of Damages in Personal Injury Cases
Here are some of the types of compensation that might be included in your settlement:
- Economic Damages: These tangible financial losses can be calculated based on current and future expenses. Economic damages for personal injury cases can include all associated medical bills and ongoing medical care. Additionally, lost wages and future earning capacity are calculated into this category based on your salary, work history, and how the injury will impact your ability to work in the future.
- Non-Economic Damages: Other damages fall into the non-economic category. These intangible losses are harder to calculate, which is why you need an attorney to assist with these personal injury damages. Examples include pain and suffering relating to the physical and emotional toll of your recovery, as well as the psychological impact (emotional distress).
- Special Damages: This category of damages won’t apply to every case, but your attorney will help you determine whether your case qualifies for these types of damages. Special damages in personal injury can include various financial losses that can be quantifiable, such as property damage, home modifications to accommodate your disability, and transportation expenses when medical visits are necessary.
- General Damages: Some losses aren’t easily measurable, and they fall into the category of general damages in injury cases. Examples include a reduced quality of life, loss of companionship, and long-term suffering that impacts your life overall.
- Punitive Damages: If the defendant was reckless in their actions, then the court might determine it necessary to include punitive damages in personal injury cases. This only applies for actions that were malicious or grossly negligent, such as fraud or drunk driving.
The Valuation Process: How Are Damages Calculated in Personal Injury Cases?
Various methods are used in claims to calculate the economic and non-economic damages that are factored into personal injury cases. For economic damages, the calculations are pretty straightforward because it is simple math to add up medical bills, receipts, and income statements.
For non-economic damages, it’s common to use the multiplier method for calculations: multiplying the economic damages based on the severity factor of the injuries. Or, a per diem rate may be used to figure out the pain and suffering.
Certain factors will impact the calculations, such as:
- The severity and impact of your injuries
- How your life and work have been affected after the accident
- Future impact of these injuries on your quality of life
- The strength of the evidence in the case
- Your medical documentation
Family Members Can Be Affected by Derivative Damages in Personal Injury Lawsuits
Not only is the victim affected by these damage calculations, but family members also need to know how the compensation works. For example, family members might also make claims in the case because of the way the injuries are impacting their lives.
The most common examples include:
- Loss of spousal support
- Wrongful death damages
What You Need to Know About the Tax Implications of Personal Injury Damages
When you receive the settlement, are damages for personal injury taxable? As a general rule of thumb, you will not pay taxes for the compensation received for medical expenses and pain and suffering.
But if punitive damages are added in for your case, then this amount might be considered taxable income. Talk to your attorney and an experienced accountant for the best tax strategy to minimize the amount that you need to pay.
How to Overcome Legal Hurdles and Challenges in Claiming Personal Injury Damages
Even though it should be a straightforward process to be compensated for your injuries, the reality is that there can be many challenges in this process. You need to gather evidence and prove liability, which is why it makes sense to hire an experienced attorney for assistance.
Our legal team is here to help you gather medical records, include expert testimony, and prove your pain levels and emotional distress to ensure that you receive fair compensation. Keep in mind that some states have caps on non-economic damages, but a skilled attorney will know the best strategies for challenging these limits.
FAQs
In a personal injury lawsuit what are derivative damages?
Derivative damages refer to the claims that family members can bring to the case. Examples include loss of spousal financial support or loss of companionship.
How to calculate damages in a personal injury case?
When calculating personal injury damages, there are a variety of factors that must be considered: adding up economic damages (lost income and bills), as well as a formula that determines the value of non-economic damages.
Call Our Experienced Team to Maximize Your Personal Injury Damages
When you need help with a personal injury case, our team at Green Law Firm is just a phone call away. We have years of experience helping accident victims, and our goal is to maximize the amount of compensation that you receive. Contact us to book a no-obligation consultation and learn more about the legal services that are available: (956) 542-7000.
