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Personal Injury

What is Damages?

Monetary compensation awarded to a person injured through the wrongful conduct of another party. Damages are intended to restore the injured party to the position they were in before the injury occurred.

Understanding Damages

There are several types of damages: compensatory (economic and non-economic), punitive, and nominal. Economic damages cover quantifiable losses like medical bills and lost wages. Non-economic damages cover pain and suffering, emotional distress, and loss of enjoyment of life.

Examples

  • 1Medical expenses and future treatment costs
  • 2Lost wages and diminished earning capacity
  • 3Pain and suffering compensation

Why This Matters in Legal Cases

Damages determine how much compensation your client will receive. Understanding the different types is crucial for case valuation. Economic damages are easier to calculate (add up the bills), but non-economic damages often represent the larger portion of a settlement, especially in serious injury cases. Some states cap non-economic damages, particularly in medical malpractice cases.

Explaining to Clients

Help clients understand that their case value includes more than just medical bills. Document how the injury affects daily activities, relationships, sleep, hobbies, and mental health. These "pain and suffering" elements can significantly increase case value. Keep a daily journal of symptoms and limitations.

Frequently Asked Questions

What are economic vs. non-economic damages?

Economic damages are quantifiable financial losses: medical bills, lost wages, property damage, future treatment costs. Non-economic damages compensate for subjective losses: pain and suffering, emotional distress, loss of enjoyment of life, loss of consortium.

Are there limits on how much I can recover?

Some states cap non-economic damages, particularly in medical malpractice cases. These caps vary widely. There are generally no caps on economic damages. Punitive damages, when available, may also be capped at a ratio to compensatory damages.

How is pain and suffering calculated?

There's no fixed formula. Common methods include the multiplier method (multiplying economic damages by 1-5 depending on severity) or the per diem method (daily rate for suffering). Factors include injury severity, recovery time, permanent impairment, and impact on daily life.

Sources

Related Terms

Personal Injury

A legal term for an injury to the body, mind, or emotions, as opposed to damage to property. Personal injury claims are typically brought in civil court to recover compensation for harm caused by another party's negligence or intentional misconduct.

Negligence

The failure to exercise the level of care that a reasonably prudent person would exercise in similar circumstances, resulting in harm to another person or their property.

Last updated: January 24, 2026
Reviewed by: Quilia Legal Content Team

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