Economic Damages in Personal Injury Law: What is Included?
In personal injury law, economic damages are essential because they reimburse individuals for the money they have lost due to accidents or injuries. Unlike non-economic damages, which account for intangible losses such as pain and suffering, economic damages are tangible and quantifiable.
This article explores the common types of economic damages, how they are calculated, and why they are important.
What Are Economic Damages?
Economic damages refer to the direct financial losses that an injured party incurs due to an accident.
These damages are designed to reimburse the victim for expenses that can be documented and verified. Common examples include:
Medical Expenses: These cover the price of hospital stays, operations, prescription drugs, rehabilitation, and any further treatment that may be needed as a result of the injury.
Lost Wages: A victim may be entitled to reimbursement for lost wages while they heal if their injury keeps them from working.
Property Damage: If automobiles or personal belongings are damaged, victims may be eligible for reimbursement for repairs or replacements.
Out-of-Pocket Expenses: This group includes additional expenses brought on by the accident, such as travel to doctor's appointments or necessary home adaptations for accessibility.
According to the Centers for Disease Control, injuries were predicted to cost the US economy $4.2 trillion in 2019.
Types of Economic Damages
Depending on each case's unique circumstances, different forms of economic damages may be awarded. But some typical classifications are as follows:
Initial Medical Expenses: All of the injury's immediate medical expenses.
Rehabilitation Costs: Expenses for occupational therapy or physical treatment required for recovery.
Future Medical Expenses: Anticipated costs for ongoing treatment or care that may be required.
Lost Earning Capacity: If an injury affects a victim's ability to earn a living in the future, they may claim damages for diminished earning potential.
Funeral Expenses: In wrongful death cases, economic damages can include costs associated with burial and funeral services.
Calculating Economic Damages
Due to its reliance on tangible proof like bills, invoices, and pay stubs, calculating economic damages is typically simple. Usually, the procedure entails,
Documenting Expenses: Collect all relevant documentation reflecting financial losses incurred due to the injury.
Summing Up Costs: Adding together all medical bills, lost wages, property repair costs, and any other out-of-pocket expenses.
Expert Testimony: Expert testimony may be needed to project future medical expenses or lost earning capacity in cases involving future economic losses.
Legal professionals often ensure that all potential economic damages are accounted for accurately.
Proving Economic Damages
To successfully recover economic damages in a personal injury lawsuit, the plaintiff must establish several key elements:
- The defendant owed a duty of care to the plaintiff.
- The extent of these losses can be substantiated with evidence.
- The defendant breached this duty through negligent actions.
Evidence may include medical records, accident reports, receipts for expenses incurred, and testimonies from witnesses regarding the impact of the injury on the victim’s life.
Limitations on Economic Damages
While economic damages are typically easier to quantify than non-economic damages, there are still limitations that plaintiffs should be aware of:
Statute of Limitations: Most jurisdictions impose time limits for filing a personal injury claim. For example, in Tennessee, this period is generally one year from the date of the accident.
Insurance Policy Limits: The amount recoverable may also be limited by the at-fault party's insurance coverage.
Takeaway
Economic damages serve as a vital component of compensation in personal injury law. They provide financial relief to victims who have suffered tangible losses due to another party's negligence.
It is crucial for anyone handling a personal injury claim to comprehend economic damages and how they are calculated. Victims can start their recovery journey and successfully pursue compensation for their monetary losses by assembling the necessary paperwork and collaborating with legal professionals.
