Economic vs. Non-Economic Damages in Personal Injury Cases
In an Alabama personal injury case, people who get hurt due to someone else’s negligence can seek compensation for their financial and personal losses. These types of compensation are called economic and non-economic damages. Understanding the kinds of compensation you may be eligible for is crucial to maximize your recovery and restore your well-being after an injury.
At Serious Injury Law Group, personal injury law is all we do. Our attorneys know what it takes to pursue maximum compensation and win. Whether we are negotiating for a settlement with the insurance company or arguing your case in court, you can count on our firm to fight for every penny you deserve.
Contact us today for a free consultation with an experienced personal injury lawyer.
What Are Damages?
In a legal context, “damages” refers to the money an injured party receives to reimburse them for their losses. The purpose of damages in a personal injury case is to make the victim “whole” again. In other words, the goal is to restore the victim to where they were before the injury occurred.
At Serious Injury Law Group, our attorneys understand that no amount of money can undo the physical and emotional trauma of a severe accident. However, recovering fair compensation can ease the financial burden of the incident, allowing victims to focus on healing and moving forward.
Main Types of Damages Available in Alabama
In most Alabama personal injury cases, the main types of damages available to victims include the following:
Economic Damages
Economic damages in a personal injury case compensate you for verifiable monetary losses related to the incident. Some common examples of economic damages include:
- Past and future medical expenses for surgeries, doctor visits, medication, medical devices, and other injury-related treatment
- Lost wages from missed work during your physical recovery
- Loss of future earning capacity if you are disabled and cannot return to your previous job
- Property damage, such as vehicle repairs or replacement after a car crash
- Out-of-pocket expenses for things like transportation to medical appointments and help with household chores while you are injured
To recover economic damages, you must present documentation of your losses, such as medical bills, pay stubs, and receipts. An experienced personal injury attorney can gather the necessary proof to calculate your economic damages claim.
Non-Economic Damages
Non-economic damages in a personal injury case compensate you for how your injuries have negatively affected your life, regardless of financial cost. Examples of non-economic damages include:
- Physical pain and suffering
- Mental and emotional distress
- Disfigurement and scarring
- Loss of enjoyment of life
- Loss of companionship
These intangible losses can be more challenging to quantify than economic losses. However, they often make up the bulk of a personal injury settlement or verdict, especially when a victim suffers severe injuries.
How Do I Calculate Economic Damages?
To calculate your economic damages, your personal injury lawyer will add all your tangible monetary losses related to the accident. This process will include:
- Gathering all your medical bills and estimating future medical expenses
- Collecting pay stubs, tax returns, and other proof of your lost wages
- Determining any property damage losses
- Estimating your loss of future earning potential based on medical evidence and the statements of vocational experts
Providing thorough documentation is vital to recovering maximum compensation for your economic losses. Your attorney will help you compile the necessary records and evidence.
Challenges in Proving Non-Economic Damages
Non-economic damages can be more challenging to prove because they are subjective and do not have a precise dollar value. You cannot simply add up bills or receipts to calculate pain and suffering or lost enjoyment of life. Instead, your attorney will use other evidence to illustrate the extent of these losses, such as:
- Medical records showing the severity of your injuries
- Photos of disfiguring scars
- Mental health records documenting trauma, anxiety, or depression
- Testimony from you and your loved ones about how your life has changed since the accident
- Opinions from medical and occupational experts on your future limitations
The skill and experience of your personal injury lawyer play a significant role in recovering fair compensation for non-economic damages. At Serious Injury Law Group, we know how to build solid cases for maximum non-economic damages.
Does Alabama Award Punitive Damages?
In rare cases, Alabama courts may award punitive damages in addition to economic and non-economic damages. Punitive damages punish the defendant for gross negligence or willful misconduct and deter similar misbehavior in the future.
However, Alabama has strict rules regarding the awarding of punitive damages. Your personal injury attorney must prove by clear and convincing evidence that the defendant deliberately engaged in oppression, fraud, wantonness, or malice. An example may be a trucking company knowingly allowing a driver to operate an overloaded truck with faulty brakes.
Are There Caps on Damages in Alabama?
Some states have laws limiting how much money can be awarded to a personal injury victim. Most Alabama personal injury cases have no caps on economic, non-economic, or total compensatory damages.
However, state law does place damage caps in certain circumstances:
- Wrongful death compensation is limited to punitive damages.
- There is a cap on punitive damages in personal injury cases of $1.5 million or three times the compensatory damages awarded, whichever is higher.
- The limit for claims not involving a physical injury is three times the compensatory damages or $500,000, whichever is greater.
Your personal injury lawyer can advise you on any damage caps that may apply to your case.
How Can a Personal Injury Lawyer Maximize My Compensation?
The most important thing you can do to protect your right to full compensation is to speak with an experienced personal injury attorney as soon as possible. Your lawyer will:
- Conduct a thorough investigation to learn what happened and who is liable
- Gather evidence of the at-fault party’s negligence
- Document your economic and non-economic damages with medical records, expert testimony, and other key evidence
- Handle all communications and negotiations with the insurance company
- Take your case to trial if the insurer will not offer a fair settlement
At Serious Injury Law Group, we have the experience, resources, and tenacity to fight for maximum compensation in your personal injury case. We will leave no stone unturned in pursuing the full damages you deserve. If you have been injured in Alabama, contact our skilled legal team today for a free consultation.