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Writer's pictureRoland Swanson

COMMON TYPES OF COMPENSATION IN PERSONAL INJURY CLAIMS

If inquiring into the types of compensation available as a result of sustaining a personal injury online, it is highly likely you will come across the term “damages.” Although the word may have a negative connotation in everyday lingo, in the legal world, damages is often used in reference to money claimed by or ordered to be paid to a person as compensation for their loss or injury. When dealing with or discussing personal injury claims, it is also likely you will hear or observe specific types of damages, such as: compensatory damages; economic damages; non-economic damages; and punitive damages. A thorough understanding of these terms can be essential in making sure you receive the fair and just compensation you deserve in a personal injury claim.



Compensatory damages 

 

Compensatory damages can be defined as damages (money) sufficient in amount to indemnify or properly compensate an injured individual for the loss or harm they experienced. For example, if the driver of a vehicle involved in a car accident sustained a broken arm which ultimately resulted in a $25,000 medical bill, monies paid in a settlement or verdict to cover the medical bill will be considered to be compensatory damages. The purpose of compensatory damages is to make the individual who was harmed/injured by the negligent acts of another person “whole.” Also included under the compensatory damage umbrella are two specific types of recovery: (1) economic damages; and (2) non-economic damages.

 

  1. Economic damages – Economic damages are essentially what they sound like, damages available or recovered for the expense, bill, loss, etc. that is quantifiable or able to be determined by showing proof of the amount/expense. Medical bills, lost wages, out-of-pocket costs and expenses, and property damage are all examples of economic damages.


    For example, when an injured individual is forced to miss time from work due to the severity of injuries they sustained as the result of a car accident, that missed time can be quantified by determining factors such as: the number of hours the injured individual worked prior to the accident; the salary or compensation received from their employer; and the total amount of hours missed as a result of the car accident. In analyzing the foregoing factors, a definitive number can be calculated. That calculated number will show the exact amount an injured individual should be entitled to for lost wages in this particular example.

 

Ex. 1: John Doe was injured as the result of a car accident he was involved in. At the time of the accident, John was employed as a construction worker, working 40 hours per week, every week. John’s pay rate was $60/hour. Due to physical limitations experienced as a result of the car accident, John missed two weeks (80 hours) from work. John’s lost wages can be determined by multiplying 80 (the number of hours missed from work) by 60 (John’s pay per hour). In doing so, you will be able to quantify the amount John is entitled to for lost wages ($4,800).

 

Ex. 2: Jane Doe was involved in a car accident that resulted in her car being declared a total loss. The totaled vehicle was the only mode of transportation Jane had prior to the collision. As a result, Jane had to pay for transportation to her physical therapy appointments until she was able to receive a new vehicle. In doing so, Jane ultimately spent $1,000. The transportation expense Jane was forced to cover will be considered to be an economic damage and there is definitive proof (ex., receipts, credit card statements, etc.) that will show the total amount Jane spent for the rides to her medical appointments.

 

  1. Non-economic damages – Unlike economic damages, non-economic damages do not come with a price tag showing the definitive amount a loss amounted to. Instead, non-economic damages are intangible losses in nature for which an injured individual may be entitled to. Some common examples of non-economic damages include: pain and suffering; emotional distress; anxiety; mental anguish; loss of enjoyment of life; loss of consortium (damages awarded to a spouse or family member for the loss of companionship and support); Post-traumatic stress disorder (PTSD); etc. The following scenarios are examples of situations where awarding non-economic damages would be proper:

 

Ex. 1: John’s wife, Jane, was involved in a car accident that resulted in Jane sustaining serious physical injuries. Prior to the accident, John and Jane were living a married couple’s dream. However, due to the severity of Jane’s injuries, the marital union began deteriorating. All of a sudden, the love, affection, and companionship that existed prior to the accident became non-existent. Even though John was not physically injured as a result of the accident, he experienced a loss through the ultimate impact the accident had on his marriage to Jane. As such, John may be entitled to receive compensation in a loss of consortium claim.

 

Ex. 2: Jim was involved in a motor vehicle collision and sustained injuries including: a concussion; sprained neck; and severe back pain. In addition to the physical injuries, Jim also suffered significant mental trauma. The concussion resulted in irritability and Jim often found his level of patience to be nearly non-existent. This significantly affected his interactions with family members, friends, and work colleagues. Additionally, Jim was diagnosed with Post-traumatic stress disorder (a disorder that can develop in a person after experiencing a shocking, freighting, or dangerous event.) Although the mental impairments Jim sustained are unable to be quantified, since the impairments do not technically cost anything (unlike physical injuries that come with detailed invoices for medical treatment), Jim is still able to recover damages or compensation for the mental pain and anguish he experienced as a result of the car accident.

 

Punitive Damages

 

Punitive damages are damages awarded in addition to the actual damages a plaintiff receives whenever the defendant acted with recklessness, malice, or deceit. Unlike compensatory damages, punitive damages serve to penalize or punish the wrongdoer. Although punitive damages are not allowed in every state, they are permitted in personal injury cases filed in Missouri and Illinois. However, in Missouri, an injured party is required to prove the negligent party acted with a deliberate intent to harm the injured party or that the negligent party acted with reckless disregard for others. In Illinois, the injured party is required to prove the negligent party acted intentionally, fraudulently, willfully, or was grossly negligent. Some states, such as the State of Missouri, have statutory caps that limit the monetary amount an injured party is allowed to receive in punitive damages.


A common example of a personal injury case where punitive damages may be proper is a car accident that involves a drunk driver. Even if the drunk driver did not deliberately or intentionally harm the injured party, their decision to operate a motor vehicle under the influence of alcohol was a reckless disregard to the safety of other motorists and pedestrians.

 

CALL THE SWANSON LAW FIRM TODAY!

 

Whether you or a loved one are seeking compensatory or punitive damages as the result of a personal injury claim, having a knowledgeable and experience personal injury attorney can prove itself to be necessary in helping to ensure you receive the compensation you deserve. The Swanson Law Firm has the requisite skill and experience to help you through the process. Call us today to schedule your free consultation.

 

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