The Two Popular Methods to Evaluate Non-Economic Damages in Personal Injury Law

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When someone suffers an accidental injury, the consequences often extend far beyond medical bills and lost wages. Under Personal Injury Law, non-economic damages, such as pain and suffering or loss of enjoyment of life, also deserve recognition. These damages can be just as impactful as financial losses, but since they are intangible, assigning a value to them is challenging. In Personal Injury Law cases, two popular methods are commonly used to calculate non-economic damages: the multiplier method and the per diem method.

Understanding Non-Economic Damages

Non-economic damages refer to losses that are not tied to a specific monetary value. These include emotional distress, loss of companionship, or physical pain. For instance, a car accident victim who suffers permanent scarring or ongoing pain may not just face medical expenses but also emotional hardships that alter their quality of life. A personal injury lawyer will often use one of two calculation methods to argue for fair compensation for these intangible losses.

The Multiplier Method

The multiplier method is one of the most frequently used approaches for calculating non-economic damages. Here’s how it works: the total economic damages (such as medical expenses and lost wages) are multiplied by a number, usually between 1.5 and 5. The specific multiplier depends on the severity of the injury and its long-term effects.

For example, if a victim incurs $20,000 in economic damages and their injuries are deemed severe, with a multiplier of 4, the non-economic damages could amount to $80,000. Together, the total compensation would be $100,000.

This method provides a straightforward way to quantify non-economic losses. However, the choice of the multiplier often becomes a point of contention between the parties involved. Insurers may argue for a lower multiplier, while the injured party’s legal team may advocate for a higher one, reflecting the true impact of the injuries.

The Per Diem Method

The per diem method, Latin for “per day,” assigns a daily monetary value to the victim’s pain and suffering. This value is then multiplied by the number of days the victim is expected to endure the effects of the injury.

For instance, if a victim experiences significant pain for 200 days and their daily value is set at $200, the total non-economic damages would be $40,000. The daily rate is often calculated based on the victim’s income, but it can also consider other factors, such as the severity of the pain or the disruption to their life.

This method is particularly effective for cases involving temporary but intense pain or suffering. However, it is less commonly used for injuries with long-term or permanent consequences, as calculating damages over an extended period can be subjective.

Choosing the Right Method

The choice between the multiplier and per diem methods often depends on the specifics of the case. The multiplier method works well for injuries with lasting effects, as it accounts for the broader impact on the victim’s life. The per diem method, on the other hand, is better suited for injuries with a finite recovery period but significant short-term suffering.

Victims should work closely with their legal representatives to determine which method is more appropriate for their situation. A skilled attorney will consider all aspects of the case to ensure the compensation request reflects the true extent of the victim’s non-economic losses.

Challenges in Calculating Non-Economic Damages

Despite these established methods, calculating non-economic damages is not an exact science. Insurers and opposing parties often challenge these claims, arguing that they are overly subjective. This makes it essential for victims to present compelling evidence, such as medical reports, witness testimony, and detailed personal accounts of how the injury has affected their daily lives.

A strong case for non-economic damages requires more than just a calculation. It involves effectively demonstrating the emotional, physical, and psychological toll of the injury.

Also Read : Filing a Wrongful Death Claim? Keep These 5 Points in Mind

Final Thoughts

Non-economic damages play a vital role in personal injury cases, recognizing the life-altering effects that go beyond financial losses. While the multiplier and per diem methods provide frameworks for calculating these damages, every case is unique. Victims should rely on legal professionals to guide them through this complex process and advocate for fair compensation that truly reflects their suffering.

Understanding how these methods work is essential for anyone pursuing a personal injury claim. By doing so, victims can ensure they receive the compensation they deserve, helping them rebuild their lives after a traumatic experience.

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