The Difference Between Economic and Non-Economic Damages in Injury Cases
Being in an accident, due to someone else's fault, isn't something anyone wants to experience in their life. But when it happens, you'll want to know your rights and get out of the mess as quickly as possible, right?
Dealing with your injuries, lost income, mental trauma, and other aspects is already quite overwhelming. So, on top of that, if you have to struggle to get fair compensation, then the situation can get even more complicated!
In personal injury cases, that compensation usually comes in two forms - economic damages and non-economic damages. Knowing the difference between the two can help you stay aware of your rights and also receive exactly what you deserve - no less!
But if all this sounds too complicated, we'll break it down to you today in this blog!
What are Economic Damages?
When you've been in an accident in Sacramento due to someone else's fault, you'll be eligible for compensation to cover your tangible financial losses. This can be anything -
- Medical Bills: This will include the fees for your ER visits, surgeries, or physical therapy.
- Lost Income: Your financial losses if you miss work due to the accident.
- Loss of Earning Ability: When an accident makes you incapable of returning to your old work.
- Other Expenses: This will include the costs of medical devices, home modifications, and even your transportation for doctor visits.
Mostly, your economic damages will come with receipts, bills, and other physical documents. When you hire a personal injury attorney in Sacramento, they'll use these proofs for your case to ensure you get the compensation you deserve!
What are Non-Economic Damages?
After being in an accident, you suffer more than just your physical injuries, and you lose more than just your income. You might go through intense pain, trauma, and other emotional distress as a result of the incident. And these are called your non-economic damages. These can be -
- Emotional Suffering: Including psychological issues like PTSD, depression, anxiety, and more.
- Loss of Companionship: If the injury or the accident affects your relationship with your family or partner.
- Pain: It can include physical pain, mental health problems, and other kinds of suffering after the accident.
- Loss of Entertainment: When the accident takes away your ability to play sports that you used to play or other activities that you loved.
Unlike economic damages, this type of loss can be a little difficult to prove. But with the right guidance from your lawyer, you can recover your losses quickly and easily!
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How are Non-Economic Damages Calculated?
While non-economic damages don't come with receipts, you can still ask for fair compensation to recover these losses. Your personal injury lawyer in Sacramento will help you form a case using your personal journals, expert testimonials, and your statements about your daily struggles.
In some cases, your lawyer might use a multiplier method to calculate your non-economic damages. In this method, they'll take your economic damages and multiply them by a number (often between 1.5 and 5, depending on the extent of your injury) to decide on the final compensation amount.
There's another method through which your lawyer might calculate your non-economic losses - the per diem method. For this, your lawyer will put a daily price on what it's like to live with your injuries, then multiply it by how many days you've been dealing with them.
Difference Between Economic and Non-Economic Damages
| Comparison Point | Economic Damages | Non-Economic Damages |
| Purpose | To help you recover your tangible financial losses after the accident | Acknowledging and compensating for your hurt and other sufferings after the accident |
| Who Calculates It | Accountants, medical billing experts, etc. | Mental health professionals, legal teams, and injury experts |
| How Easy It Is to Calculate | Easier, due to the presence of physical documents as proof | A bit complicated, as it depends on a person's experience and suffering (and this can vary) |
| Effect on Your Compensation Amount | There's a clear starting point and fixed settlement amount | It can increase your final settlement if your lawyer shows strong proof. |
| Long-Term Effect | The compensation amount can decrease over time after medical bills and income losses are covered. | The compensation amount can either increase or decrease based on your mental and physical health conditions |
Challenges You Might Face In Getting Your Compensation
Whether you're claiming for your economic damages or non-economic damages, you can face several challenges along the way. And these might sometimes affect your compensation amount as well!
These are the problems you can face -
- Insurance Company: They'll be ready to pay for your economic damages, but can be slow to recognize (and pay for) your non-economic losses.
- Disputed Liability: The other party might refuse to pay for your economic and non-economic damages.
- Not Enough Proof of Damages: If you lose some medical receipts or have weak evidence for your emotional pain, it can affect your case.
- Pre-Existing Health Conditions: In case you already had a health condition, the other party can argue that your current injuries existed before the accident.
With the help of your personal injury attorney in Sacramento, things can become quite a lot easier and hassle-free. They'll help you find and arrange the necessary documents needed as proof and guide you throughout the process so that you can receive the compensation you're entitled to, without any delays!
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Your Questions - Answered Here!
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Can I claim both economic and non-economic damages in the same case?
Yes, of course! Your accident might cause both economic and non-economic damages to you, so you can ask for compensation to cover both types of losses. You can speak to a reliable personal injury lawyer in Sacramento to know how you can proceed with your claim.
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Do I still get economic damages if I was partially at fault?
It is possible! If you live in California, you'll have to follow the comparative negligence rule, which will decide your compensation amount based on the percentage of your fault in the accident. If you're 20% at fault, your compensation for economic damages might get reduced by 20%.
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Can non-economic damages be higher than economic damages?
Of course! After an accident, you might need extra care for your permanent disability or any other serious mental or physical condition. In those cases, your non-economic damages will be higher than the economic damages.
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Are non-economic damages punitive?
Not at all! Non-economic damages aren't meant for punishing anyone, but to compensate you for the physical and mental pain that you suffered due to an accident.
Takeaway
If you've been in an accident in Sacramento due to someone else's fault, you can ask for compensation for both economic and non-economic damages. While economic damages will compensate you for your financial losses, including your medical bills and lost income, non-economic damages will cover the compensation for your emotional pain and suffering.
Both are calculated differently, and you'll need separate types of proof to support each type of loss. So, to handle the situation properly, you can hire a reputable and knowledgeable personal injury lawyer in Sacramento for legal advice and help!
Your Fight Is Our Fight - Doyle & O'Donnell Will Work To Get You the Justice You Deserve!
With 30+ years of experience and 95% success in resolving personal injury claim damages, Doyle & O'Donnell will go above and beyond to ensure you get the compensation you deserve at all times! We'll stay by your side from the start till the finish and will ensure you get not a dollar less than you're entitled to.
We've already won millions in compensation for our clients and will do the same for you as well. When you rely on our expert personal injury attorney in Sacramento, rest assured that we'll handle it all without you having to worry about your case.
So, call us now at 916-892-0754!