Economic vs Non-Economic Damages_ What’s the Difference_ Image

If you got hurt in a personal injury accident in the state of Georgia, you could claim compensation for your losses. However, before proceeding with your lawsuit, knowing the difference between economic and non-economic damages is important. What’s the difference between economic vs non-economic damages? An experienced Georgia personal injury lawyer can explain the differences between those types of damages and the losses they cover.

Economic Damages

“Damages” is a legal term for compensation. Economic damages are compensatory damages for specific losses you incurred due to an accident. What’s an example of economic vs non-economic damages? Common kinds of economic losses include:

  • Medical Expenses — These can include the cost of surgery, medication, physical therapy, x-rays, ambulance rides, emergency room visits, and doctor visits. Additionally, if your accident-related disability requires you to modify your home, you can claim for those costs. Any settlement or award should include any future medical care your physician prescribes in a long-term care plan.
  • Property Damage — This can include damage done to any of your property that was harmed in the accident. Such property includes laptops, cell phones, clothing, a motorcycle, or your vehicle. You can seek compensation for their repair or replacement.
  • Lost Wages or Income — If your injuries kept you off work, your compensation can include that lost money. Further, if the accident leaves you unable to return to your former job or one that pays as well, your compensation can include the difference in your pre-injury and post-injury wages.
  • Loss of Future Earning Capacity — If a personal injury results in permanent injury or disability, it can prevent you from working and providing for yourself. If you’re unable to return to work at all, your economic damages should include compensation for your future lost earnings. Assessing the value of this loss is one of the reasons you need an experienced personal injury lawyer on your case. They can assess the number of years you would have continued to work, promotions and bonuses or benefits you’ll miss, and other factors.

Evidence and Calculations for Economic Damages

A claim for economic damages requires evidence that shows the specific value of your losses. This evidence can include:

  • Medical Bills
  • Repair Receipts
  • Home Modification Receipts
  • Paystubs and Performance Review
  • Expert Testimony

Add all the costs and expenses together with specific prices. The resulting dollar amount of economic damages is the total losses for the claim.

Non-Economic Damages

Non-economic damages are compensation for more personal and emotional losses that aren’t as simple to quantify financially. What’s an example of economic vs non-economic damages? Non-economic damages examples can include:

  • Pain and Suffering — This refers to the physical discomfort you experience as a result of your injury. While not as readily quantifiable as physical wounds, pain and suffering are losses that have value. Your medical records can support a claim for fair compensation. Additionally, a personal journal documenting your daily pain level and how the injuries affect your life is evidence.
  • Emotional Distress — This refers to the mental and emotional conditions caused by the accident, such as post-traumatic stress disorder (PTSD), depression, stress, trauma, and anxiety.
  • Loss of Enjoyment of Life — If your injury prevents you from participating in activities and hobbies you enjoyed before the accident, you can get compensation for this loss. These activities and hobbies include cooking, traveling, attending classes or social clubs, playing sports, playing an instrument, exercising, going to the gym, camping, fishing, boating, hiking, and engaging in community service and volunteer work.
  • Loss of Consortium, Companionship, or Support — If an injured person has a spouse, their spouse can seek compensation for any decline in the relationship caused by the injury. This includes loss of sexual relations, the ability to have children, loss of activities the couple did before the accident, and loss of emotional support. If a spouse makes a loss of consortium claim, their evidence may include testimony from them and the injured person, as well as other close friends and family. 

Evidence and Calculations for Non-Economic Damages

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Your medical records, personal journal, and the testimony of friends and relatives are evidence that supports your claim for non-economic damages.

Determining the appropriate dollar value for non-economic damages is not easy. Lawyers, insurance companies, and adjusters generally use one of two methods to arrive at an appropriate number for these financial losses.

In the multiplier method, the total value of the economic losses is multiplied by a factor between 1.5 and 5. The more catastrophic the injury, the higher the factor. For example, a person with significant spinal cord damage that resulted in paralysis might use a five, while a person who suffered a broken leg, surgery, and some residual scarring might use a two. The product of the multiplier is the claim’s non-economic value.

In the per diem method, a number is chosen that represents the injured person’s non-economic losses for a day. Often, the figure used is one day’s wages. This number is multiplied by the number of days that the injured person suffered because of the accident. The product of this calculation is the total value of the non-economic losses.

If your case goes to trial, juries have broad discretion to determine the non-economic damages a plaintiff’s award should contain.

Call Us Today

Don’t know the differences between economic damages vs non-economic damages? At Chris Hudson Law Group, we understand how painful and costly an accident can be. We have a stellar track record of helping our clients receive the compensation they deserve. In some cases, we’ve helped clients receive millions in settlements. Our experienced staff of Augusta personal injury attorneys is skilled at handling a wide variety of personal injury cases. We’ll work closely with you, and our team prides itself on maintaining communication with our clients during every step of the legal process.

If you have suffered an injury in an accident that wasn’t your fault in Georgia, don’t hesitate to take action. You may be entitled to economic and non-economic damages for your accident-related losses. Call (706) 863-6600 today or contact us online for a free consultation.

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Last Updated : September 19, 2024