To calculate damages in catastrophic injury cases, you must look at both economic and non-economic losses. The economic components can be calculated based on actual and projected figures. The non-economic components are harder to quantify due to their subjective nature.
When damage claims are well documented with credible evidence, they are more believable. The main damage components for a catastrophic injury are:
- Medical expenses and related care – past and future
- Lost earnings and future income opportunities
- Suffering and personal limitation as a result of injuries
Economic damages include medical bills, lost wages, costs for personal care, and any other expenses that come from the injury. Future medical care costs and expected lost income often need expert analysis to determine the right amounts.
After economic damages are calculated, a common way to estimate non-economic damages is to use a multiplier. The total economic damages are multiplied by a factor, usually from 1.5 to 5, depending on how severe the injury is and how much it has changed the person’s life.
Non-Economic Damages
Many catastrophic injury non-economic damages cannot be calculated with exact numbers. Factors that influence the calculation of non-economic damages include:
- Pain and suffering
- Injury permanence
- Intensity of treatment
- Loss of quality of life
- Life expectancy
The quality of the evidence for each factor greatly affects the amount of non-economic damages. Usually, there are no limits on how much compensatory damages can be awarded. Exceptions happen when a catastrophic injury is caused by medical malpractice or by a state or local government. In these cases, there may be limits on the damages that can be awarded.
Comparative Fault and Catastrophic Injury Damages
In Texas, if a person is partly at fault for the accident that hurt them, it does not change how damages are calculated. However, it will reduce the amount of money they can receive.
If an injured claimant’s percentage of fault is greater than 50%1, no compensation may be recovered. A percentage of fault 50% or less will reduce the amount of compensation by the corresponding percentage.
Exemplary (Punitive) Damages and Catastrophic Injury
Exemplary damages can be awarded if the person causing the injury meant to harm someone or ignored the risk of causing serious harm. These damages are to punish the wrongdoer, not to compensate the victim, and the amount is restricted.
The quality of the evidence for each factor greatly affects the amount of non-economic damages, and usually there are no limits on how much can be awarded.
Assess Financial Resources Available to Pay Damages
The financial resources available to pay the damages also influence settlement value. Insurance is a common source available to pay damages claims. However, the amount insurance companies must pay is restricted to the policy limits of the applicable coverage. If insurance is insufficient to cover all damages, other potential sources must be explored.
In the case of automobile accidents, an injured party’s own insurance may provide some coverage if they carry uninsured or underinsured motorist coverage. Beyond insurance, the personal assets of the wrongdoer may be accessed by filing a lawsuit. Or there may be other parties with financial liability for the damage.
Have More Questions about Catastrophic Injury Damages?
Because so much is at stake, it is important to have a skilled negotiator who knows how to handle catastrophic injury claims. Contact us today to schedule a Free Consultation to get your questions answered.
Sources
1https://statutes.capitol.texas.gov/?tab=1&code=CP&chapter=CP.33&artSec=33.001