In cases where property is damaged, the legal system provides methods to compensate for the loss of property. But human beings don’t have a dollar value. So, what are compensatory damages in these cases?

The law considers how best to compensate for personal injuries through the mental and physical suffering the victim feels. It’s a difficult calculation, but we can help to demystify some of the thought that has gone into it and how much you can expect in compensation for different personal injury cases.

What Are Compensatory Damages?

At its core, the compensatory damages meaning is straightforward: monetary awards designed to compensate the injured party for losses suffered due to the defendant’s wrongful conduct. The goal is to restore the plaintiff to the position they would have been in if the injury had never occurred.

But, of course, it’s more complicated than that as monetary value doesn’t translate directly into the personal loss suffered from a major injury. Still, the law makes an effort to make the victim ‘whole’ again as best it can.

Think of it this way: if life were a board game, compensatory damages are meant to move your piece back to where it was before the other player’s mistake knocked you off course. In any case, the principle is not to punish the defendant with a fee, but rather to support the victim and restore them as best the law can to their previous life.

Compensatory damages form the backbone of most personal injury lawsuits. Whether you’re dealing with a car accident, medical malpractice, or a slip-and-fall incident, compensatory damages will be at the heart of the case.

Types of Compensatory Damages

Compensatory damages are typically divided into two main categories: economic (or special) damages and non-economic (or general) damages. Here’s how they break down:

Economic Damages

These are out-of-pocket expenses that can be calculated with relative precision. They include:

1. Medical expenses: Both current and future medical costs related to the injury.
2. Lost wages: Compensation for time off work due to the injury.
3. Property damage: Costs to repair or replace damaged property.
4. Loss of earning capacity: How much the injury cost you in potential work if it affects your ability to perform your job.

Non-Economic Damages

These are more subjective and harder to quantify. Beyond the medical expenses and work-related losses, most injuries will have a toll on the person in many other ways, affecting the way they live the rest of their life. These include:

1. Pain and suffering: Physical discomfort and emotional distress caused by the injury.
2. Loss of enjoyment of life: If the injury prevents you from enjoying hobbies or activities you once loved.
3. Loss of consortium: Compensation for the impact on your relationship with your spouse.
4. Disfigurement or physical impairment: For permanent physical changes or disabilities resulting from the injury.

 

The total amount sought for compensatory damages will normally be the sum of the precise costs of the economic damages combined with an estimate of the non-economic damages through discussions between the victim, various experts, and their legal advisors.

How Are Compensatory Damages Calculated?

Calculating compensatory damages is part rigid numbers, part speculation, and part subjective assessment. Here’s a general overview of the process:

Economic Damages

These are typically straightforward and based on the actual figures of the case:

1. Add up all medical bills related to the injury.
2. Calculate lost wages based on time missed from work.
3. Estimate future medical expenses and lost earning capacity, often with the help of medical and economic experts.
4. Sum up any other quantifiable losses (property damage, etc.).

Non-Economic Damages

Here is where more speculation and subjective assessment come into play. There’s no universal formula for calculating pain and suffering or loss of enjoyment of life in compensation cases. Instead, courts use a balance of methods, depending on the jurisdiction, seriousness of the case, and other factors:

1. Multiplier method: Economic damages are multiplied by a number (typically between 1.5 and 5) based on the severity of the injury.
2. Per diem method: A daily rate is assigned to the pain and suffering and multiplied by the number of days the plaintiff suffered.
3. Jury determination: In many cases, it’s left to the jury to decide what amount fairly compensates the plaintiff for their non-economic losses.

 

It’s important to note that some states have caps on non-economic damages, particularly in medical malpractice cases.

Compensatory Damages vs. Punitive Damages

A related concept in law to compensatory damages is punitive damages. It’s helpful to understand how the two differ to better understand what is at stake.

Compensatory damages vs. punitive damages is a comparison of purpose and application in the law:

• Compensatory damages: As discussed, these are meant to make the plaintiff “whole” again. They’re awarded in nearly all successful personal injury cases.
• Punitive damages: These are intended to punish the defendant for particularly egregious behavior and deter similar conduct in the future. They’re only awarded in cases involving intentional misconduct or gross negligence.

 

Here’s a quick comparison for reference:

Compensatory Damages	Punitive Damages
To compensate the plaintiff	To punish the defendant
Based on plaintiff’s losses	Based on defendant’s conduct
Awarded in most successful cases	Awarded only in extreme cases
Calculated based on actual and projected losses	Often calculated as a multiple of compensatory damages

Compensatory Damages Example…

Imagine Sarah, a graphic designer, is rear-ended at a stoplight by a distracted driver. She suffers a severe back injury that requires surgery and physical therapy. She’s unable to work for three months and has to turn down a major project at work. Even after recovery, she can’t sit for long periods, affecting her work capacity indefinitely.

Here’s how compensatory damages might break down in Sarah’s case:

Economic Damages:

• Medical expenses: $50,000 (surgery, hospital stay, physical therapy)
• Lost wages: $15,000 (3 months of missed work)
• Lost project: $10,000
• Future medical expenses: $5,000 (ongoing physical therapy)
• Reduced earning capacity: $20,000 per year

 

Non-Economic Damages:

• Pain and suffering: $100,000
• Loss of enjoyment of life: $50,000 (Sarah can no longer enjoy her hobby of hiking)

 

In this compensatory damages example, Sarah’s total compensatory damages could amount to $250,000 plus $20,000 per year for reduced earning capacity. Of course, many factors can change these numbers, but it is a reasonable summation of what you can expect in this case. 

The Role of Attorneys in Securing Compensatory Damages

Given the complexity of calculating and arguing for compensatory damages, having an experienced personal injury attorney like those at Natanzi Law Group can help. They are able to:

1. Gather and present evidence of your economic losses.
2. Work with experts to project future expenses and lost earnings.
3. Build a compelling case for non-economic damages.
4. Negotiate with insurance companies for a fair settlement.
5. If necessary, present your case effectively to a jury.

 

Remember, insurance companies have teams of lawyers working to minimize their payouts. Having a knowledgeable and strong advocate on your side is critical to leveling the playing field and leveraging the best chance to be fairly compensated.

Conclusion

Compensatory damages are at the heart of personal injury law, designed to make victims whole after they’ve suffered harm due to someone else’s negligence.

By understanding what compensatory damages are, how they’re calculated, and how they differ from punitive damages, you’re now better equipped to proceed with decisions on your case.

In the end, while no amount of money can truly make up for a severe injury, fair compensatory damages can provide the financial support needed to move forward and rebuild a victim’s life after an accident.