How Personal Injury Lawyers Calculate Non-Economic Losses

If you are involved in a personal injury accident, some damages are quite easy to calculate. All you are required to do is add the amount you have spent out of your pocket. However, other damages, such as pain and suffering, can be quite hard to calculate.

If you suffered emotionally, it can be classified as a non-economic loss that needs compensation. The challenge lies in determining the right figures. This is why you need to get the help of great law firms like The Champion Firm, Personal Injury Attorneys, P.C.

The Champion Firm, Personal Injury Attorneys, P.C., has built a reputation as a client-focused personal injury law firm that obtains remarkable results for people who have suffered injuries as a result of someone else’s negligence. The firm obtained a $17 million settlement in a lawsuit against the Metropolitan Atlanta Rapid Transit Authority (MARTA).

Here we go!

What are Economic and Non-Economic Damages?

Personal injury cases generally involve economic and non-economic damages. The economic damages are the tangible losses directly related to the injury, which are current and future medical expenses, treatment, or devices. Such are quantifiable out-of-pocket costs. On the other hand, non-economic damages involve intangible losses, such as mental anguish and loss of limb functionality.

These cannot be measured by bills but affect one’s quality of life. Finding the right multiplier is a way to value these non-economic damages. Both of them matter, bearing their financial and emotional impact when there is an injury and when one seeks compensation for the same.

How are Economic and Non-Economic Damages Calculated in a Personal Injury Case?

Several methods can be used to calculate economic and non-economic damages. You can either choose to go with the multiplier method, per-diem, structured settlement, or hedonic damages method.

Below is a detailed insight into these methods.

• Multiplier Method

Non-economic damages, like pain and suffering, are usually assessed through the multiplier method. This technique is commonly used in wrongful death cases; it has the advantage of giving some indication of non-economic losses that the surviving family members will experience.

Economic damages, such as medical bills and lost wages, are tallied first. A multiplier of 1.5 to 5 is selected, depending upon factors like the severe nature of injuries and recovery time. Then, for instance, by multiplying $50,000 in economic damages by 2, the total compensation awarded would be $100,000.

Factors influencing the multiplier include injury severity, recovery length, quality of life impact, and jurisdiction. The multiplier method, therefore, is one structured approach to putting the non-economic damages in such a way that they can be fairly compensated for the intangible impacts of personal injury.

• Per Diem Method

The per diem approach calculates the amount of compensation the plaintiff is entitled to by assigning a set amount for every day that the plaintiff has endured injury-related suffering. This method considers the severity of the injury and its impact on the daily life of the plaintiff. It operates on the assumption that the value the plaintiff’s pain and suffering hold is numerical, per day.

However, determining this value is tricky given the fact that an injury’s effect on quality of life should be considered when calculating it. While in theory an uncomplicated principle, the application of the per diem approach may vary from case to case, depending on the unique circumstances, including the duration and intensity of the plaintiff’s suffering.

Final Thoughts

If you have ever been involved in a personal injury case, you will agree with me that it can prove to be quite daunting when it comes to calculating economic and non-economic damages. However, it doesn’t need to be hard, all you need to do is put the above factors into consideration to help you and your attorney calculate damages.