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How are non-economic losses calculated in personal injury claims?

Whether it’s a car accident, a slip and fall or an incident of medical malpractice, a personal injury claim can lead to devastating losses for the victim and their immediate family members. However, not all of those losses are easily quantified.

It’s fairly easy to add up medical bills from hospital stays and doctors’ visits, lost wages and property damage – but how do you put a price tag on someone’s pain and suffering? Pain and suffering, emotional distress, the loss of enjoyment of life are all considered “non-economic” damages. It’s not easy to calculate their monetary value in a claim, but it has to be done for victims to be properly compensated.

What sort of evidence supports non-economic damage claims?

Since you can’t exactly pull out receipts and prove the value of your losses, the court may consider things like:

  • Your personal testimony about specific ways that your life has been negatively affected by your injuries, whether that was just for a while or ongoing
  • Witness testimony from friends, family members and others who have personally observed the changes you’ve undergone since your injuries
  • Medical records and doctor reports, which can indicate your pain levels over time and depression or anxiety over your condition, scars and ongoing trauma
  • Daily records or journals that you’ve kept while you were going through your recovery that detail your limitations, emotional challenges and other struggles
  • Expert testimony from medical experts, mental health professionals and vocational experts who can give insight into the emotional toll of severe injuries

There are numerous ways that non-economic damages can be calculated, but one of the most common is the “multiplier method.” This method looks at the quantifiable (economic) losses you’ve suffered and then multiplies that figure by one and a half to five times, based on the severity of your losses, to come up with a dollar amount.

Non-economic damages often represent a significant portion of a personal injury claim. As such, they’ve often in dispute – which is why it pays to have experienced legal guidance by your side.

 

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