How to Calculate Compensatory Damages

Plaintiffs can receive compensatory damages in an insurance claim or civil lawsuit. These damages often result from someone’s negligence and can include both:

• Economic damages: Also known as actual damages, economic damages have a defined financial value. For instance, a medical bill has a specific financial value, so it falls in the category of actual damages. These damages tend to be easier to calculate, but they can become complicated in certain cases (such as if you will need medical care for the remainder of your life).
• Non-economic damages: Also known as general damages, non-economic damages do not have an obvious financial value. Pain and suffering is the primary (and most common) example of general damages. Your lawyer will rely on legally recognized calculation methods to determine the value of your general damages.

Some people may refer to compensatory damages as recoverable damages or simply “damages.” In layman’s terms, these are the types of harm you have suffered due to another party’s negligence that you deserve compensation for.

It can be difficult to determine what your damages are, how much they are worth, whether you deserve compensation for them, and how to seek that compensation. Leave these concerns to an experienced personal injury lawyer.

To calculate your compensatory damages, your lawyer will start by totaling the value of your economic damages, such as medical bills and lost income. While this may sound simple enough, accurately calculating the value of your actual damages requires organization, thoroughness, and great attention to detail.

Calculating non-economic damages is even more complex. Your attorney may use one of two common methods:

• The per diem method: This method involves calculating a daily value for the client’s pain and suffering. While this value is generally close to their average daily wage, it may depend on the severity of the victim’s injuries, their injuries’ impact on their quality of life, and the expected duration of their recovery. The attorney then multiplies this value by the number of days the client has experienced (and will continue to experience) pain and suffering, arriving at a total value for their non-economic damages.
• The multiplier method: In the multiplier method, the attorney determines the cost of the client’s actual damages and then multiplies that value by a certain amount to calculate the value of general damages.

A bit of projection could also be necessary. For instance, if you will need rehabilitation for an injury for the foreseeable future, your attorney may consult doctors and other qualified experts to project the cost of future rehabilitation.

Attorneys understand when to use different calculation methods and always account for the full scope and cost of the client’s damages. Once you hire a lawyer, you can rest assured their settlement demands will reflect the total cost of your damages.

Your personal injury lawyer must justify their settlement demands, and that means proving both your economic and non-economic damages. Some means of proving a client’s damages can include:

• Medical records, including doctors’ written diagnoses of injuries and symptoms
• Medical bills detailing the care and services the victim has received
• A medical expert’s explanation of the plaintiff’s future care needs and their costs
• A mental health expert’s diagnosis of the plaintiff’s pain and suffering
• Invoices for vehicle repairs or other property-related expenses
• Past income statements that show how much income the plaintiff has lost because of the at-fault party’s negligence

Every plaintiff has a different damage profile. Your lawyer will speak with you and conduct an investigation, creating a detailed record of your unique damages. This record will be a key feature in settlement negotiations.

Personal injury lawyers handle every aspect of their clients’ cases. This provides many benefits for the client, who:

• Can focus on recovery: You can never spent too much time or resources on your health. Allowing a lawyer to oversee your case frees up much-needed time to rest and receive the treatment you need.
• Knows an experienced legal professional is fighting for their financial recovery: You may feel a great sense of relief when you turn your case over to an attorney you trust. You may rest easier and feel far less stress knowing a lawyer is fighting hard for the settlement or judgment you deserve.
• Doesn’t have to worry about making costly mistakes: By placing a lawyer between you and those who owe you compensation, you significantly reduce the risk of saying or doing something that could jeopardize your case.

Most personal injury attorneys also use a contingency fee structure, which can further add to the client’s peace of mind. This fee structure means you won’t have to pay an attorney any upfront or out-of-pocket costs, and the lawyer will only receive a fee if they succeed in handling your case.

Your lawyer can also ensure you file your lawsuit within the statute of limitations found in Florida Statutes § 95.11. Missing this deadline may mean you lose the right to seek compensatory damages, so this is not something to take lightly.