Damages are the legal remedy requested by an injured party after an accident to make them whole again. There are generally two types of damages awarded in personal injury accidents: economic damages and non-economic damages.
Economic damages compensate victims for their financial losses, and they are easy to calculate. These damages include things like medical bills, lost wages, and property damage repairs.
On the other hand, non-economic damages compensate victims for their intangible losses after an accident, and it can be much more challenging to put a value on them. Below, you can learn more about non-economic damages and how to calculate them.
What Are Non-Economic Damages?
Non-economic damages are often referred to as pain and suffering damages. These damages compensate victims for their physical and psychological trauma endured because of an accident.
Take a simple car accident claim, for example. Victims who suffer injuries in these accidents, especially severe injuries, have many more losses beyond just the monetary expenses associated with the accident.
Some common types of non-economic damages present in car accident claims and other types of personal injury claims include:
- Pain and suffering
- Emotional distress
- Loss of consortium
- Diminished quality of life
- Depression
- Anxiety
- PTSD
- Loss of reputation
- Permanent scarring
- Disfigurement
While money cannot make the suffering go away, it can help ease some of the financial stress of a victim’s future. Additionally, financial compensation is the method by which our court system uses to make victims whole again after an accident.
Calculating the Value of Your Non-Economic Damages After an Accident
Putting a specific dollar value on your non-economic damages can be difficult. However, there are two common methods that are often used to estimate the value of these damages. The most common method for calculating non-economic damages is the multiplier method. Using this method, a multiplier is assigned to your case based on several factors, including:
- The severity of your injuries
- How long it took you to recover
- Whether you will be left with permanent scars or effects from your injuries
- How your relationships have been affected by your injuries
- How any scarring or disfigurement affect your daily life
The assigned multiplier is typically somewhere between 1.5 to 5. The more severe your injuries, the higher the multiplier. Multipliers closer to 5 are reserved for cases involving extremely severe or catastrophic injuries. Once the multiplier is determined, the value of your economic damages is multiplied by this multiplier to get an estimate of your non-economic damages.
For example, imagine you suffer moderate injuries in a motorcycle accident. The multiplier assigned to your case may be 3. If your economic damages totaled $20,000, then the value of your non-economic damages may be estimated at around $60,000.
The other method for calculating the value of these damages is known as the per diem method. Under this method, a daily value is assigned to your claim based on the same factors already mentioned above. That daily value is then multiplied by the number of days it took you to reach maximum medical improvement (MMI).
For example, if the daily value assigned to your claim is $200 and it took you 100 days to reach MMI, your non-economic damages may be worth approximately $20,000. This method is not used as commonly as the multiplier method. However, it may still be used in some instances.
Types of Accidents Where Non-Economic Damages Are Available
Non-economic damages may be available after many types of personal injury claims. These damages are present in cases involving negligence as well as claims based on intentional acts. Some common types of cases involving non-economic damages include:
- Car accidents
- Truck accidents
- Motorcycle accidents
- Bicycle accidents
- Slip and fall accidents
- Medical malpractice
- Dog bites
- Defective products
If you sustained an injury during an accident, the chances are high that your claim could include non-economic damages as well.
Does North Carolina Put a Cap on Non-Economic Damages?
Some states place limits on how many non-economic damages may be recovered in an accident claim. Thankfully, North Carolina does not limit non-economic damages in most personal injury cases. This means that you can recover all the non-economic damages necessary to fully compensate you for your pain and suffering.
The exception to this rule is in medical malpractice cases. In these cases, the law does limit non-economic damages to no more than $500,000. This limit applies to the total amount of all your non-economic damages in the case.
Additionally, your non-economic damages may be limited if you share some of the blame for your accident. North Carolina follows a pure contributory negligence rule. This means that if you are found to be even 1% responsible for your accident, you are barred from recovering any compensation for your damages.
Contact Our North Carolina Personal Injury Lawyers for a Free Consultation
If you have been hurt in an accident, you may be entitled to non-economic damages as part of your claim. An experienced personal injury lawyer can help you estimate the full value of your damages and fight for the compensation you are owed.
Contact Riddle & Riddle Injury Lawyers today at 800-525-7111 to schedule a free consultation with a North Carolina personal injury lawyer.