When pursuing a personal injury claim, it’s crucial to understand the types of damages that may be awarded. Generally, compensation is divided into two main categories: economic damages and noneconomic damages. Each serves a different purpose and addresses distinct aspects of the injury. Here’s a detailed look at the key differences between economic and noneconomic damages.
What Are Economic Damages?
Economic damages, also known as special damages, refer to the quantifiable financial losses incurred due to an injury. These damages are intended to compensate the victim for measurable out-of-pocket expenses. The primary characteristic of economic damages is that they can be calculated and documented with relative accuracy.
Common Types of Economic Damages
Medical Expenses
Reimbursement for medical expenses includes costs for hospitalization, surgeries, medications, physical therapy, and future medical care related to the injury.
Lost Wages
Compensation for lost wages covers the income you’ve lost while recovering from the injury. This category can also include loss of earning capacity if the injury impairs your ability to work in the future.
Property Damage
If personal property, such as a vehicle, was damaged as a result of the incident, economic damages can cover the cost of repairs or replacement.
Out-of-Pocket Expenses
Additional costs related to the injury, like transportation to medical appointments or hiring help for household tasks, can also be claimed under economic damages.
Future Economic Losses
These are projected future expenses directly related to the injury. They could include long-term medical care, rehabilitation, and diminished earning capacity.
What Are Noneconomic Damages
Noneconomic damages, also known as general damages, refer to the intangible losses that are harder to quantify. These damages aim to compensate for the subjective, non-monetary impact the injury has had on the victim’s life. Unlike economic damages, noneconomic damages are not easily calculable and often require expert testimony for valuation.
Common Types of Noneconomic Damages
Pain and Suffering
This category compensates for the physical pain and emotional anguish experienced due to the injury. The severity and duration of pain are considered when determining the amount.
Emotional Distress
Emotional distress damages cover psychological impacts such as anxiety, depression, and post-traumatic stress disorder (PTSD) resulting from the injury.
Loss of Consortium
This type of damage compensates spouses or family members for the loss of companionship, affection, and sexual relations that the injured party can no longer provide.
Loss of Enjoyment of Life
Compensation for loss of enjoyment of life covers the diminished ability to enjoy activities and hobbies that you once loved but can no longer partake in due to the injury.
Differences in Calculation
The experienced personal injury lawyers at Milanfar Law Firm explain how economic damages and noneconomic damages are calculated differently:
Ease of Calculation
Economic damages are straightforward and supported by objective evidence such as bills and pay stubs. Noneconomic damages, however, are subjective and often require expert testimony for assessment.
Predictability
Economic damages tend to be more predictable and consistent as they are based on actual financial losses. Conversely, noneconomic damages can vary significantly between cases, even those with similar injuries, because they depend on individual circumstances and the subjective judgment of the jury.
Economic and noneconomic damages serve different roles in compensating for injuries. While economic damages reimburse victims for tangible financial losses, noneconomic damages cover the more subjective, intangible effects of an injury. Understanding these distinctions is vital for anyone involved in a personal injury claim, whether seeking compensation or defending against one.
