What Are Economic Damages in a Personal Injury Case?

In a personal injury case, the legal term for the financial compensation available to the victim for injuries and other losses connected to an accident is damages. Damages are broken down into two major categories: compensatory and punitive damages.

The first type makes a victim whole again by reimbursing him or her for specific losses, while the second punishes a defendant for especially wrongful acts. Compensatory damages are further sorted into economic and noneconomic damages.

What Are Damages?

The purpose of filing a personal injury claim is to make a victim (called a plaintiff) whole again after a preventable accident. In other words, to restore the plaintiff to the financial state he or she likely would have been in had the accident not happened. The civil courts do this by awarding damages, or financial compensation for the victim’s losses.

The Texas civil justice system allows an injured accident victim to claim financial compensation for both economic and noneconomic damages in a personal injury lawsuit. The victim can only recover a monetary award, however, if the victim or his or her personal injury lawyer can prove a defendant was negligent and this caused the accident. The legal definition of negligence is a level of carelessness that causes injury or harm to another person.

Economic vs. Noneconomic Damages

Economic damages refer to financial compensation awarded for the monetary losses a plaintiff suffered in an accident. Monetary losses are also called tangible losses, as they are expenditures supported by hard evidence, such as hospital bills from necessary medical care.

Noneconomic damages, on the other hand, make up for the intangible losses a victim suffered. Examples of noneconomic losses include emotional distress, physical pain, mental anguish, loss of consortium, inconvenience and lost quality of life.

Types of Economic Losses

A preventable accident such as a car accident or slip and fall can lead to many types of physical, emotional and financial losses for a victim. A victim’s life may never be the same after a serious or catastrophic accident. To recover financial compensation and move forward after an accident, a victim must file an insurance claim or personal injury lawsuit.

When submitting a demand letter to an insurance company, a victim must list an amount that would fully compensate him or her for past and future losses. This includes compensation for any money already spent recovering from the accident, as well as foreseeable expenditures. Examples of economic losses commonly involved in a personal injury case include:

• Hospital bills and ongoing medical care
• Physical therapy and rehabilitation
• Disability accommodations, including home or vehicle modifications
• Lost wages and employment benefits (past and future)
• Property damage repairs or property replacement
• Travel expenses and rental car costs
• Legal fees and court costs
• Other out-of-pocket expenses
• Funeral and burial costs, in a wrongful death claim

The exact economic losses listed in a personal injury claim depend on the specific traits of the case. In general, a case involving more severe injuries will result in greater economic damages awarded to the plaintiff than a case involving minor injuries. This is because severe injuries require more money in medical care and lost wages. However, each case is unique. The value of a case depends on a variety of factors

When to Speak to a Personal Injury Lawyer

If you’ve been injured in an accident in Houston, it is important to consult with an attorney before accepting a settlement from an insurance company. The insurer may not award you a fair amount based on the true value of your economic and noneconomic losses.

An attorney has the experience and knowledge to create a comprehensive list of your past and future losses, as well as to accurately calculate your case’s value. Your attorney can negotiate with an insurance provider on your behalf or take your case to trial for maximum financial compensation, if necessary.

For more information about economic damages during a personal injury case in Houston, contact an attorney at Gordon, Elias & Seely, LLP today.