Types of economic damages in a personal injury case
If you have suffered an injury due to the negligence or recklessness of another party, you may be able to recover compensation through a personal injury claim. There are a few main types of damages that may be recovered with the help of a Lakewood personal injury attorney, one of which is economic damages. These damages seek to compensate the injury victim for the financial losses tied to the injury. In this article, we will differentiate economic damages from other types of compensatory damages, as well as discuss some of the main categories of economic damages you may be entitled to.
What are economic damages?
As mentioned above, there are a few types of damages that may be recovered in a personal injury claim. These include economic damages, non-economic damages, and punitive damages. Economic damages refer to the quantifiable, tangible, and financial losses directly related to the injury. The cost of these damages can be reasonably assessed with documentation such as bills, receipts, and financial statements. On the other hand, non-economic damages are much more subjective and oftentimes difficult to quantify as they seek to compensate the victim for losses such as pain and suffering, and emotional distress. Lastly, punitive damages, also known as exemplary damages, are the most uncommon forms of damages as they are typically only recovered in the most egregious cases.
Medical expenses
Medical expenses are one of the most significant types of economic damages in personal injury cases. These include costs such as hospital stays, surgeries, prescription medications, doctor’s visits, and physical therapy. If the victim requires ongoing treatment and rehabilitation, future costs must also be factored into the total compensation for medical expenses. Keeping important documentation such as receipts and bills for these expenses is crucial to recovering the maximum amount of compensation.
Property damage
Property damage is another common type of economic damage in personal injury cases, particularly those involving vehicles. For example, if someone is involved in a car accident and their car as well as personal belongings are damaged, they can seek compensation for the repair or replacement of the property. It is important to know that factors such as market value and depreciation will affect the compensation you can recover for property damage.
Lost wages
In many personal injury cases, accident victims are left unable to work for a period of time due to their injuries. Fortunately, however, individuals may be able to recover compensation for the income that they would have received had they not been involved in the accident. This may include regular salary, bonuses, commissions, and any other benefits the victim may have missed out on. To calculate lost wages, personal injury attorneys will typically look at pay stubs and tax returns that document their regular income.
Loss of earning capacity
The final type of economic damages that may be recovered in a personal injury case is known as “loss of earning capacity.” This refers to the reduction in an individual’s ability to earn income in the future due to a permanent injury or long-term disability. This differs from lost wages in that loss of earning capacity seeks to compensate individuals for the long-term financial effects of the injury, rather than the immediate ones. For example, if you have suffered a spinal cord injury that leaves you partially paralyzed and unable to perform the normal physical duties of your role, you may have to take on a lower-paying role or you may be unable to work altogether. In these cases, compensation is determined by calculating the difference between the victim’s earning potential both before and after the injury.
