Do you know how much compensation you could get after suffering an injury that was not your fault?
Personal injury cases become difficult to handle because they involve multiple stressors such as physical pain and emotional distress on top of increasing medical expenses. To receive fair compensation you must understand the different types of damages available.
The good news?
Recognizing applicable damages in your case can boost your settlement amount while aiding your financial and physical recovery after an accident.
What You’ll Discover:
- Understanding Economic vs. Non-Economic Damages
- Special Damages Explained
- General Damages: Compensation for Non-Monetary Losses
- Punitive Damages: When They Apply
- How Damages Are Calculated
Understanding Economic vs. Non-Economic Damages
There are two primary classifications of personal injury damages which include economic damages and non-economic damages.
Economic damages represent the actual financial losses you can measure which arise from your injury. These include:
- Medical expenses
- Lost wages
- Property damage
- Rehabilitation costs
- Future medical care
Calculating economic damages remains simple because they correspond to concrete financial losses supported by receipts and bills.
Non-economic damages provide compensation for intangible losses which lack a specific monetary value. These might include:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Loss of consortium (damage to relationships)
When you find a personal injury lawyer in Dearborn, they’ll explain how Michigan law approaches these damages differently than other states. Local lawyers have specialized knowledge about the specific personal injury laws in Dearborn which have an impact on your compensation possibilities.
Special Damages Explained
Special damages refer to economic damages that quantify all financial losses which occur as a direct result of your injury. These damages can be calculated using a calculator and supported by proper documentation.
The prevailing types of special damages encompass:
1. Medical Expenses
All expenditures related to your medical care fall under this classification.
- Emergency room visits
- Hospital stays
- Surgeries
- Medication
- Physical therapy
- Assistive devices (wheelchairs, crutches, etc.)
- Transportation to medical appointments
And the most important part?
Special damages encompass all your current medical treatment costs and any additional medical expenses you will probably need in the future due to your injury.
2. Lost Wages and Earning Capacity
You have the right to financial compensation when your injury makes it impossible for you to work.
- Wages lost while recovering
- If returning to your prior job position proves impossible you will experience diminished earning potential.
- Benefits and bonuses you missed out on
- You may be able to claim compensation for potential earnings you would have received if your injury was permanent.
The daily motor vehicle accident rate in the U.S. results in over 6,500 injuries each day which leads to lost wages becoming a substantial part of compensation in personal injury claims.
3. Property Damage
The damage to your personal property during the incident should be reimbursed through compensation.
- Repair costs
- Replacement value
- Rental fees if you need temporary replacements
4. Out-of-Pocket Expenses
The recovery period accumulates various miscellaneous costs which need to be accounted for.
- Home modifications for accessibility
- The cost of hiring assistance for household tasks you cannot manage should be included as recoverable expenses.
- Child care expenses
- Specialized diet requirements
Documenting expenses accurately is essential so be sure to save every receipt.
General Damages: Compensation for Non-Monetary Losses
General damages are non-economic damages which present greater subjectivity and quantification challenges than special damages. General damages represent a significant part of what people receive during personal injury settlements.
1. Pain and Suffering
The compensation addresses the physical pain and discomfort you endured because of your injury. Several factors determine the amount of pain and suffering damages including:
- Severity of the pain
- Duration of the pain
- Type of injury sustained
- Treatment required
- Impact on daily activities
2. Emotional Distress
Serious accidents result in physical damage and lead to major psychological trauma which manifests as:
- Anxiety
- Depression
- Post-traumatic stress disorder (PTSD)
- Sleep disorders
- Phobias related to the accident
Workplace safety reports show 5,283 people died from occupational injuries during 2023 which amounts to a fatality each 99 minutes. Families and colleagues experience devastating emotional effects when these incidents occur.
3. Loss of Enjoyment of Life
Compensation eligibility exists when injuries stop you from taking part in former activities. This includes:
- Recreational activities and hobbies
- Exercise and sports
- Social events
- Travel
- Educational pursuits
4. Loss of Consortium
These damages provide compensation for the detrimental effects your injuries have caused in your relationship with your spouse and family members.
- Loss of companionship
- Loss of care and support
- Loss of affection
- Loss of sexual relations
Lawyers handling personal injury cases in Dearborn know how to display these damages before insurance companies and court juries.
Punitive Damages: When They Apply
Punitive damages serve to penalize defendants who engage in especially harmful conduct whereas compensatory damages reimburse victims for their losses. Punitive damages are granted when the defendant acted with intention, malice, recklessness or gross negligence.
Michigan law restricts the awarding of punitive damages to particular situations while such damages remain rarely given.
The year 2024 saw approximately 29,135 fatalities from motor vehicle accidents in its first nine months where reckless behavior in some cases may lead to punitive damages.
How Damages Are Calculated
The type of compensation being sought determines which method will be used to calculate your damages.
The calculation of economic damages requires the total of documented expenses and estimated future costs while gathering medical bills and consulting with medical and economic experts to evaluate lost wages.
For non-economic damages, courts typically use:
- Economic damages are multiplied by a range of 1.5 to 5 depending on how severe the injury is.
- Under the Per Diem Method each day of pain and suffering receives a set monetary rate.
- The Precedent Method requires comparing similar legal cases for analysis.
2023 statistics show that employers in private industry recorded approximately 2.6 million nonfatal workplace injuries and illnesses.
Factors That Affect Your Compensation
Some key factors can influence your compensation:
Comparative Negligence: Your financial compensation will decrease if you share some responsibility for the incident. Michigan employs a modified comparative negligence standard where compensation is reduced if you have less than 51% fault.
Mitigation of Damages: To reduce your damages you should adhere to your doctor’s instructions and attend all scheduled medical appointments.
Insurance Coverage Limits: Your recovery may face restrictions based on the at-fault party’s insurance policy limits.
Federal court settlements awarded compensation to about two-thirds of personal injury claimants at an average rate of $75,000.
When to Consult a Personal Injury Attorney
Legal representation plays an essential role in personal injury cases because there are approximately 39.5 million medical treatment-required cases each year in the United States. A lawyer specializing in personal injury cases in Dearborn will determine applicable damages while collecting evidence and consulting experts before negotiating with insurance providers and representing you at trial as necessary.
Wrapping It All Up
If you sustain an injury because of another person’s negligence you need to understand personal injury damages. Each type of damage exists to fulfill a distinct role in restoring your well-being.
- Economic damages compensate for tangible financial losses
- Non-economic damages offer compensation for personal pain and suffering as well as the impact of injuries on quality of life.
- Extreme negligence situations can result in the application of punitive damages.
Experienced Dearborn personal injury attorneys familiar with Michigan laws will help you maximize your compensation for tangible economic losses and intangible non-economic damages.
Secure your recovery and financial future by partnering with a skilled legal team to guide you through this complex process.
