personal injury settlements

In a personal injury case, there are essentially two types of damages that may be awarded: compensatory and punitive. Punitive damages are rare and awarded only as punishment for malicious, intentional or reckless behavior when gross negligence can be proven. Compensatory damages, on the other hand, are meant to reimburse the injured party for actual expenses and losses incurred because of their injury.

Compensatory damages fall into two categories: economic and non-economic. Economic damages are reimbursements for out-of-pocket expenses – medical bills, lost wages, lost earning capacity, and the like. These expenses can be objectively measured and are supported by such evidence as invoices, pay stubs, and repair estimates. The gray area comes in assessing the value of non-economic damages

Non-economic damages refer to intangible injuries, including:

When a person is injured as the result of another person’s negligence, their recourse is to seek damages for pain and suffering through a personal injury claim. However, “pain and suffering’ is subjective and difficult to quantify so, how are personal injury settlements calculated?

Determining a fair compensation requires looking at a number of factors, including the extent of medical bills incurred, the length of the expected recovery period, potential loss wages during that recovery period, and the emotional toll such injuries may take. While many of these factors will vary on a case-by-case basis, there are formulas that can help you gauge whether the settlement being offered is a fair one. To learn more read, “How To Determine The value of Pain and Suffering for Personal Injury Claims.”

Articles Tagged with personal injury settlements

Assigning Value to Non-Economic Damages

Putting a Price Tag on Pain and Suffering