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Non Economic Damages: Definition & What it Means for You
If there’s one thing that you can count on human beings to do, it’s to devalue their own experiences. As the country’s leading personal injury firm, we see it every day. People who are the victims of negligence and don’t even know it. Or, rather, they don’t know that there’s a course of action available to them.
The truth is, that most people only think to file a personal injury lawsuit when the damages are tangible and well documented. After all, damages like personal injuries, property destruction, and expensive repairs are all easy to recognize as a direct result of negligence on someone else’s part. But it’s also important to consider the non-economic damages. These are all of the intangible damages that can come from negligence and they can be a little harder to wrap your head around.
Non-economic damages refer to the amount of money that you may be owed for negligence that results in emotional, physical, or social damage. If that sounds broad, it’s because it is. But we’re here to break down all the factors that you need to understand in order to get the financial compensation that you deserve!
What Are Non-Economic Damages?
Non-economic damages can come in a wide range of forms. Looking for non economic damages examples? Here are a few common ones:
- Pain and Suffering - You may not know it, but your pain could actually help you be awarded more damages than you thought! For example, if you are involved in a car accident and it ends up causing long-term pain, you may be entitled to financial compensation.
- Emotional Distress - Emotional distress, including anxiety, PTSD, grief, and depression related to negligence on behalf of another individual may also qualify you for non-economic damages.
- Loss of Enjoyment of Life - Loss of enjoyment of life is a common sign that someone may be suffering from depression and/or PTSD. If you feel that you have not been yourself since the incident of negligence, you may be able to claim non-economic damages.
- Loss of Consortium - In some cases, negligence can lead to the loss of relationships, particularly in the case of family. Whether this is due to relationship strain or injuries, judges refer to this as loss of consortium and take it into consideration when determining non-economic damages.
- Disfigurement - Any form of disfigurement, including scarring, burns, or more severe cases can potentially be cause for non-economic damages.
Non-Economic Damages & Personal Injury Law
Non-economic damages and personal injury law are deeply intertwined. After all, personal injury law is designed to help you receive compensation for negligent behavior on the part of others. But how exactly do non-economic damages in personal injury cases intersect?
Personal injury law is defined as the practice of law as it relates to every type of injury, including physical, emotional, and their reputation. Many of the examples of non-economic damages, as discussed above, fall into these categories.
It’s important to note that just because a plaintiff seeks non-economic damages doesn’t mean that they can’t simultaneously pursue compensation for other types of damages, including economic and punitive damages.
Understanding Punitive Damages
Economic and non-economic damages are relatively simple concepts to understand. But many people have never heard of the phrase punitive damages.
In personal injury law, punitive damages refer to the amount of money that a defendant is required to pay on top of compensatory damages. Sounds confusing? Let’s break it down.
Compensatory Damages
Compensatory damages are designed to pay back the injured party for expenses that occurred in the aftermath of an injury caused by the defendant. Compensatory damages are akin to what we refer to as economic damages and can address financial strain caused by:
- Doctor’s bills
- Repairs
- Physical therapy
- Medicine and prescription drugs
- Lost wages due to an inability to work
- Property replacement
The information about these expenses will typically be gathered by your legal team, and often have a clear paper trail, documenting them.
Punitive Damages
Occasionally - and especially when we refer to non-economic damages - it will be determined by the judge in a case that compensatory damages are not enough to account for the wrongdoing of the defendant. This generally happens when it is determined that damage was caused by gross negligence. Gross negligence is defined as negligence that demonstrates extreme or blatant disregard for the safety of lives of others.
If gross negligence is established, the jury may determine that punitive damages should be paid. These are extra damages to cover non-economic strains the plaintiff may have dealt with in the aftermath.
The Difference Between Punitive and Non-Economic Damages
On a surface level, punitive and non-economic damages may look identical. However, they have some distinct differences. The main difference is the intent of the defendant.
In many cases, accidents are just that - accidents! If one driver were to make an honest mistake that results in a car crash, they would not have to pay punitive damages, but they may need to pay non-economic damages.
Punitive damages are used in cases where gross negligence has been demonstrated. For example, a driver making a mistake may be considered negligent, but a driver who operates a vehicle while under the influence would be considered guilty of gross negligence, and may be required to pay punitive damages.
How Non-Economic Damages Vary From State to State
Now that you understand what non-economic damages are, it’s important to understand what the laws around damages are in the state that you live in. At Wettermark Keith, we proudly serve three states in the Southern U.S. Here’s what you need to know if you live in them.
- Alabama - Alabama residents are eligible to receive both economic and non-economic damages.
- Tennessee - Tennessee plaintiffs may receive non-economic damages. However, it’s worthwhile to note that in Tennessee, state law caps the amount of non-economic damages a plaintiff can receive at $750,00.
- Florida - Non-economic damages are not capped in the state of Florida, and are determined on an individual case basis. The only exception to this is in medical malpractice cases where the cap is set to $500,000.
How Compensation Is Determined
Estimating what you may receive in damages is a tricky business. Typically, your attorney will compile evidence of all the financial, physical, and emotional toll that you believe the defendant is responsible for. This will be presented to the court, but a judge and jury will make the ultimate ruling.
During a case, the judge will instruct the jury on how to calculate damages. Non-economic damage amounts are typically determined by a formula developed by insurance providers and courts.
Typically, each injury (physical and mental) will be assigned a number on a scale from 1 to 5. These rankings will be used to determine the financial compensation that you deserve.
Your Experience Matters To Us
Navigating the legal process isn’t easy, whether it’s your first time or your fifth. The key is to find a team with the experience and tools to support you through every step of the process.
At Wettermark Keith, we’re proud to have won our client millions of dollars in compensation. We’re one of the country’s top personal injury firms, with over twenty years of helping people win their cases. If you’re ready to take the next step in your personal injury case, our team is just a call away!
Ready to work together? Contact us today for a free consultation.
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