What Are the Different Types of Damages?

The point of a personal injury case is to recover damages. Damages are money paid to a plaintiff by a defendant. While personal injury cases are also about getting justice, the best way to get justice is to recover financial payment for your losses.

Every plaintiff should know about the different types of damages in Georgia personal injury cases. This information helps plaintiffs plan for the future. The best way to learn about the damages you can recover in your specific case is to talk with a Lawrenceville personal injury attorney.

Compensatory Damages vs. Non-Compensatory Damages

Compensatory Damages vs. Non-Compensatory Damages

Damages are generally divided into two categories: compensatory damages and non-compensatory damages. As the name suggests, compensatory damages compensate a plaintiff for their losses related to an accident. They can include actual losses or reasonably predicted future losses. Compensatory damages include economic damages and non-economic damages.

Non-compensatory damages are also called punitive damages. While these damages are paid to the plaintiff, the purpose is to punish the defendant. The amount isn’t tied to any actual or future loss. Instead, non-compensatory damages are symbolic and deter future bad behavior. It can serve as a signal to others that there are consequences for particularly bad acting.

Economic Damages

Economic damages are the most common type of compensatory damages. Economic damages are tangible losses. The most common examples of economic damages are:

  • Medical bills
  • Rehabilitation and physical therapy
  • Lost wages
  • Lost future earnings
  • Lost earning capacity
  • Lost employment benefits
  • Property damage
  • Out-of-pocket expenses

Economic damages vary greatly depending on the plaintiff’s situation. Some plaintiffs will have expensive medical bills, while others with a high-paying job may have more significant lost wages. There is no limit on the amount of economic damages or the type of expenses you can cover. As long as the financial loss was caused by the accident or injury, it is fair game. 

Your attorney will review medical records and bills, invoices, pay stubs, and other financials to calculate economic damages. This will serve as evidence to prove that you are entitled to the economic damages that you claim.

Non-Economic Damages

Non-economic damages are another form of compensatory damages. Unlike economic damages, non-economic damages are intangible. This type of loss is often called pain and suffering. It is payment for the invisible and unseen impact of an accident or an injury.

Non-economic damages may include payment for:

  • Physical pain and emotional suffering
  • Loss of enjoyment of life
  • Loss of companionship
  • Permanent disfigurement
  • Scarring
  • Loss of quality of life
  • Mental illnesses like PTSD, anxiety, or depression

In many cases, non-economic damages are more valuable than economic damages. This is especially true for people who have long-lasting injuries or experienced a highly traumatic accident. 

Calculating Non-Economic Damages

There are several different methods for calculating non-economic damages. Since these losses are intangible, it is hard to put a dollar figure on the suffering. One of the most common methods is to use the multiplier method.

With the multiplier method, a plaintiff multiplies the value of their economic damages by a number between 1.5 and 5. The higher the number, the more significant the injury and accident. The result is the value of their non-economic damages. 

Another way to calculate non-economic damages is to apply the per diem method. With the per diem method, the plaintiff assigns a monetary value to their daily suffering. Then they multiply the amount by the number of days that they have and will have to suffer. This method is less common but still used in some jurisdictions.

Punitive Damages 

Punitive damages are only allowed in extraordinary cases. Most personal injury plaintiffs will not recover punitive damages. This is because the bar is higher in punitive damages cases. The plaintiff will need to prove that the defendant had a certain ill intent and make a special claim for punitive damages.

Specifically, the plaintiff must prove that the defendant acted with:

  • Willful misconduct 
  • Malice
  • Fraud
  • Wantonness
  • Oppression, or
  • An entire want of care 

This applies in extreme cases, not run-of-the-mill negligence cases. Defendants who pay punitive damages have acted in such a depraved way that goes beyond a mere accident.  

Punitive Damages Cap

In Georgia, punitive damages are limited to $250,000 in certain cases, particularly medical malpractice claims. However, there are exceptions for product liability cases, where higher amounts may be awarded, and for cases involving intentional misconduct or DUI. 

The exceptions are in product liability cases when the defendant acted intentionally and cases where the defendant was under the influence of alcohol or drugs. 

The purpose of the exception for product liability cases is that a $250,000 fine may not be a lot of money for large companies. Since the purpose is to punish and deter, it wouldn’t be effective in those cases. Furthermore, the exception for intentional action and acting under the influence of drugs or alcohol is to further deter this type of behavior. 

Calculating Damages In A Personal Injury Case

One of the first steps that your personal injury attorney will take is to calculate the damages in your case. To calculate your damages, your attorney will ask you a variety of questions to get a sense of your case’s value. 

Generally, people who have permanently disabling and serious injuries will have a higher case value. That’s because they may require ongoing medical treatment and take a significant emotional toll from the accident. However, that’s not always necessarily the case. Depending on the personal impact, some people with seemingly minor injuries may have a high-value case.

To calculate your damages your lawyer will look for evidence of economic losses and non-economic losses. They will also listen to your story and decide if you are a candidate for punitive damages.

Contact Us for a Free Consultation

The best way to ensure you recover all the compensation you are entitled to is to talk with a personal injury lawyer. Contact our attorneys at Hammers Car Accident & Personal Injury Lawyers today at (770) 900-9000 for a free consultation.