Types of Recoverable Damages in Your Personal Injury Lawsuit
Denver attorneys at Babcock Law help you get familiar with litigation terminology so that you know what you can get compensation for in your injury claim
While the path to justice in a personal injury lawsuit may seem complex, it fundamentally rests on three key pillars: negligence, causation, and damages.
Every personal injury lawsuit begins with trying to prove negligence or fault. Next comes causation, wherein the plaintiff must show that the other party’s negligence led directly to their injury. Lastly, if the injured party is able to establish these two things, they must then determine the damages they are seeking to recover in the lawsuit.
This article will explain the various types of legal compensation available in a personal injury lawsuit and how these damages are calculated to help you make an informed decision when it comes to negotiating and accepting a settlement in your personal injury claim.
What are damages in a lawsuit?
In legal terms, damages are a sum of money claimed or awarded as compensation for a loss or injury.
Recoverable damages in a personal injury lawsuit are broken into two main classes: compensatory and punitive. It’s important that plaintiffs understand the distinctions between the two in order to find out whether or not one (or both) will be able to remedy their injury claim.
What are compensatory damages?
The first type of recoverable loss is called “compensatory damages.” These damages are meant to compensate the plaintiff for the losses and injuries they sustained as a result of the accident.
Compensatory damage awards are intended to make the injured party financially “whole” again, like they were before the accident, or as close as possible.
What are the two types of compensatory damages?
Within the category of compensatory damages, there are two main subtypes: injuries that are economic in nature and those that are not.
Economic damages
As its name implies, economic compensatory damages refer to those losses that cost money. They include:
- Medical treatment. Past, present, and future medical care and treatments associated with the accident. This sum is determined by doctors’ bills, pharmacy receipts, and other health care expenses.
- Income loss. Compensation for the work wages you’ve lost, as well as the money you would have been able to earn in the future if not for the accident. This is based on the accident victim’s “loss of earning capacity.”
- Property loss. Reimbursement for any vehicles, clothing, or other personal items damaged as a result of the accident.
- Legal fees. Expenses associated with filing the lawsuit, including lawyer fees, travel costs, missed time at work, etc.
These types of compensatory damages are fairly clear-cut and straightforward to calculate since they’re based on concrete financial losses and expenses.
Non-economic damages
Non-economic or “hedonic” compensatory damages, on the other hand, are intangible injuries that the claimant has suffered. Unlike economic losses, calculating non-economic damages is often difficult because there are no receipts or invoices.
However, Colorado law does put a cap on the amount of monetary awards available for non-economic damages (excluding physical impairment and disfigurement) in injury and wrongful death claims.
Compensatory damages that fall under non-economic injuries include:
- Pain and suffering. Serious discomfort or physical suffering that arose during the accident or in its immediate aftermath. This includes any ongoing or future pain that can be attributed to the accident.
- Emotional distress. The psychological trauma from an injury that a plaintiff suffers, such as anxiety, fear, loss of sleep, etc.
- Loss of enjoyment. Injuries from the accident that keep a victim from enjoying their day-to-day activities and hobbies.
- Physical impairment or disfigurement. Sometimes classified as a category unto itself, these injuries include visible scars, paralysis, brain damage, and more, and the amount of compensation is assessed by the nature, extent, and length of time the injury lasts.
There is no formula for calculating non-economic losses. Many factors can go into deciding this amount, including an individual’s type of work, pre-existing injuries, and lifestyle. For these reasons and more, it helps to have a Denver personal injury attorney on your side who knows these types of cases very well.
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What are punitive damages?
The second type of recoverable damages in personal injury litigation is punitive damages. Punitive damages are not applicable in all cases, but rather they are used sparingly in particular situations to punish the wrongful behavior of the party at fault.
Punitive damages aren’t considered economic or non-economic since they’re not intended as compensation for a loss.
What is an example of punitive damages?
Punitive damages are reserved for offending parties who display behavior that is deemed to be so reckless or hazardous that it is considered a demonstration of malice or willful disregard for the safety, health, and rights of others.
For example, if a car has a defect and the manufacturer knows that the gas tank in its vehicle is likely to explode upon impact but does nothing to change the design in fear of the cost, then their behavior could be classified as willful, and punitive damages may be awarded.
Another example is a drunk driver who causes an accident; their blatant disregard for the safety of others can also lead to punitive damages, especially if the driver is a repeat offender.
Who gets the money in punitive damages?
Punitive damages are awarded to the plaintiff, the person who was harmed by the defendant’s behavior. These damages are intended to punish the defendant and deter similar conduct in the future, but the money goes to the plaintiff as part of the overall compensation for their injury.
How are punitive damages calculated?
There’s no fixed formula for calculating punitive damages, and the amount awarded is often left to the court’s discretion. However, several factors are typically considered, including:
- Reprehensibility of the defendant’s conduct. The more outrageous or malicious the defendant’s actions, the higher the potential punitive damages. Factors such as intent to harm, recklessness, deceit, and repeated misconduct can all contribute to higher awards.
- Comparable cases. Courts may look at similar cases to gauge an appropriate range for punitive damages. This helps ensure consistency and fairness when awarding such damages.
- Defendant’s financial condition. The defendant’s wealth can be a factor, as punitive damages must be high enough to have a deterrent effect. A larger award may be necessary to make a wealthy defendant feel the impact of the punishment.
Consulting with an experienced personal injury attorney can help you understand whether punitive damages may be applicable in your case and how they might be calculated.
Get maximum compensation for your Colorado injury claim with the help of The Babcock Law Firm!
Knowing the differences between compensatory and punitive damages is a necessity when trying to legally go after reimbursement for injuries caused by another individual or party.
But before you start pursuing compensation for your losses, you must first establish fault. Check out our piece on establishing fault in a car accident for more information.
To discuss how you can prove negligence and causation in your injury claim, schedule a free consultation with The Babcock Law Firm today.
Our knowledgeable Denver injury attorneys can guide you through the complexities of your case, helping you gather evidence, build a strong legal strategy, and fight for the compensation you deserve.
Don’t face the aftermath of an injury alone; let The Babcock Law Firm be your advocate and champion for justice. Contact us today, and take the first step toward recovery and financial security.
