Suffering an injury in an accident you didn’t cause can turn your life upside down. You may face mounds of medical bills, days or weeks of lost wages, and a long recovery period. Understanding the kinds of damages you may be entitled to during this challenging time is important. The primary categories of damages in personal injury cases are economic damages and non-economic damages. Let’s explore the difference between these two types of compensation.
What Are Economic Damages?
Economic damages, or pecuniary or monetary losses, refer to the tangible financial losses you incur due to your injury. These economic losses have a specific dollar amount attached to them and typically include:
- Medical expenses: Any money paid or owed for medical treatment you need because of your injury, including hospital bills, doctor visits, medication, therapy, and future medical needs, are a part of this total. It’s important to keep detailed records of all your medical costs and expenses, including receipts, invoices, and insurance statements.
- Lost wages: Should your injury prevent you from working, you may be owed compensation for the lost earnings and income you lose during your recovery. All future losses incurred can also be included, such as regular wages and any commissions, bonuses, or other income you would have earned had you been able to work.
- Property damage: If your laptop, cellphone, vehicle, or any other personal property was damaged in the accident, you can pursue reimbursement for repair or replacement costs. Documenting the damage through photographs, repair estimates, and receipts is crucial to demonstrate the extent of your property losses.
- Loss of earning capacity: Your injury may limit your ability to maintain the income you had before the accident. This type of economic damage is particularly relevant if a long-term or permanent disability that hinders your ability to work in your chosen profession results from your injury.
Calculating economic damages is relatively straightforward since they have a specific monetary value. The amount of economic damages directly corresponds to the computed amounts evaluated at the current rate. However, keeping track of all expenses and losses related to your injury is essential so you can pursue fair compensation.
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What Are Non-Economic Damages?
Non-economic damages, on the other hand, refer to the intangible losses you suffer due to your injury. These damages don’t have a specific dollar amount attached and can be more challenging to quantify. Non-economic damages may include:
- Pain and suffering: This category includes the physical pain and emotional distress you experience due to your injury. It includes the immediate pain and discomfort you feel and any ongoing or chronic pain that affects your daily life.
- Emotional distress: Injuries can take a toll on your mental health, leading to anxiety, depression, or post-traumatic stress disorder (PTSD). These emotional challenges can affect your ability to work, maintain relationships, and enjoy life as you did before the injury.
- Loss of consortium: This refers to the loss of companionship, affection, and support suffered by your spouse or family members due to your injury. It recognizes your injury’s impact on your closest relationship and the emotional toll it takes on your spouse.
Calculating non-economic damages is complex since they don’t have a specified monetary value or pecuniary loss. Factors such as the severity of your injury, its impact on your daily life, and the duration of your recovery all play a role in determining the value of your non-economic damages. Your personal injury attorney will use their experience and knowledge to assess the value of your non-economic damages and fight for fair compensation.
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Why Understanding the Difference Matters
Understanding the difference between economic and non-economic damages is crucial when seeking compensation for your injury. It gives you a clear picture of the full impact of your injury. Knowing the difference allows you to pursue fair compensation for all your accident-related losses from insurance companies.
Additionally, Tennessee caps non-economic damages at $750,000 per case. In cases where catastrophic injuries occurred, the cap is $1,000,000. Additionally, loss of consortium damages are not included in the injured person’s cap, as a loss of consortium case is a separate action filed by the injured person’s spouse.
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Navigating the legal system after an injury resulting from another’s wrongdoing can be overwhelming, especially when you’re focusing on your recovery. That’s where a Memphis personal injury attorney can help with your personal injury claims. They can assess your case, gather evidence, and fight for the compensation you deserve.
If you’ve been injured due to someone else’s negligence, the experienced personal injury lawyers at Gatti, Keltner, Bienvenu & Montesi can help. We understand the physical, emotional, and financial toll an injury can take on you and your family. Our team will work tirelessly to help you seek the compensation you need to move forward. Contact us online or call us today at (901) 526-2126 for a free consultation, and let us help you pursue the damages you deserve.
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April 22, 2024
