What are non-economic damages in a car accident case? These damages are awarded to compensate you for losses that do not have a specific monetary value, such as pain and suffering and loss of enjoyment of life. If you or a loved one has been injured in a car crash in Texas due to someone else’s negligence, you may be entitled to receive compensation for your non-economic damages through a car accident case. You may also recover your monetary losses to cover expenses such as medical bills and property damages.
What is the difference between non-economic damages and economic damages? Non-economic damages are more difficult to calculate than economic damages, and mistakes can be costly. Fortunately, at a time when you are trying to recover from your injuries, you do not have to navigate the legal hurdles of obtaining compensation alone.
The experienced car accident and injury lawyers at Terry Bryant Accident & Injury Law are available to examine the facts of your individual situation. For a free consultation, and to learn how we can help you, call us now at (713) 973-8888 or toll-free 1 (800) 444-5000.
What Are Non-Economic Damages in a Car Accident Case?
Non-economic damages in a car accident case are payments that go directly to you as compensation for the pain and suffering and adverse effects on your lifestyle that resulted from a crash. While it is difficult to put a price on suffering, and no amount of money can make up for living with continuing physical pain and emotional trauma or the loss of a loved one, non-economic damages can at least help you and your family lead a better life without the burden of financial worries.
When Calculating Compensation, What Is the Difference Between Non-Economic Damages and Economic Damages?
When calculating compensation, it is important to understand the answer to questions like, “What is the difference between non-economic damages and economic damages?” and “What are non-economic damages in a car accident case?”
The amounts received for non-economic damages, which may be called “general damages” in Texas, are usually higher than payments for economic losses. Economic damages, called “special damages,” are easily quantifiable by adding up your costs such as medical bills, property damages, costs to replace or rent a vehicle, and lost wages. However, this money goes directly to pay your bills and does not leave you with an additional benefit. For example, if a neck injury leaves you paralyzed, economic damages would cover the cost of medical bills and therapy, but non-economic damages would compensate you for past, present, and future pain and suffering.
The amount an insurance company or a jury will award you for non-economic damages is subjective and will depend on many factors. This is why it’s extremely important to have an experienced car accident lawyer working diligently on your behalf to ensure that you receive maximum compensation for your non-economic damages.
The car accident lawyers at Terry Bryant Accident & Injury Law can give you an idea of what your case is worth. Call us today at (713) 973-8888 to find out more.
What Do Non-Economic Damages Mean?
What are non-economic damages in a car accident case? These damages cover the negative impacts on your life that are subjective in nature, not financial, and can include any of the following:
- Pain and Suffering: The amount of physical and mental pain and suffering you feel due to the injuries sustained in your car accident.
- Mental Anguish: Mental anguish typically occurs following traumatic events, such as serious car accidents. The resulting distress that victims feel is compensable under the law.
- Loss of Consortium: Loss of consortium refers to the loss of a loved one and the loss of the affection, guidance, companionship, and care they once provided as a result. Family members of victims who pass away can claim this damage.
- Physical Impairment: Victims who suffer temporary and permanent physical impairment may be eligible to claim these non-economic damages.
- Disfigurement: Disfigurement of the face, neck, arms, and other body parts are compensable, non-economic damages.
- Loss of Quality and Enjoyment of Life: The loss of the ability to engage in life activities as before the accident is compensable for non-economic damages.
Methods Used To Calculate Non-Economic Damages
As mentioned, non-economic damages do not have intrinsic financial values built into them. They are subjective by nature, which means that parties in personal injury cases must come up with a way to determine just how much these damages are worth. Although there is no one method that parties or juries must adhere to, there are two principal methods that are employed to come to an acceptable figure for non-economic damages: the multiplier method and the per diem method.
Multiplier Method
The multiplier method for determining the value of non-economic damages uses a formula that consists of the total amount of economic damages (i.e., medical bills and lost wages) and a second number (the “multiplier”) determined by the seriousness of the accident, its resulting injuries, or other exacerbating factors. For example, a severe traumatic brain injury (TBI) is likely to be assigned a higher number than a sprained ankle.
The total amount of economic damages is then multiplied by the multiplier, and the resulting product is the amount of non-economic damages that the victim should receive. For example, consider a car accident case where the victim suffers $60,000 in economic damages. If the jury or the negotiating parties determine that the injury deserves a multiplier of five, the amount of the non-economic damages will be $300,000, resulting in a total compensation payout of $360,000, excluding punitive damages.
Per Diem Method
As its name states, the per diem method determines non-economic damages based on how much a jury or the negotiating parties believe that an injury victim should get per day. An essential factor used in calculating damages based on the per diem method is how long the victim will take to recover from their injuries.
In cases where they will not fully recover from their injuries, the time it takes the victims to reach maximum medical improvement, defined as the state in which the condition of an injured person can no longer improve, is used instead. Once the number of days to recovery or maximum medical improvement is determined, it is multiplied by the per diem amount. The product that results is the total amount of non-economic damages the injury victim should receive.
Per Diem vs. Multiplier Method
As you might imagine, each method has its advantages and disadvantages that heavily depend on the circumstances of an injury. For example, parties seeking to quantify their non-economic damages for short-term injuries typically use the per diem method, given the fact that it is much simpler to predict recovery times for injuries that heal faster than others.
Physical Injuries and Non-Economic Damages in Texas
To qualify for non-economic damages in Texas, you must have a clearly demonstrable physical injury. It is not enough to be emotionally traumatized by the accident if no bodily injury occurred.
The calculation of non-economic damages in Texas can be complicated. If you have questions about your car accident claim, contact an attorney at the Terry Bryant Accident & Injury Law Firm for help.
Punitive Damages
In some situations, where the actions of the defendant were wantonly reckless and negligent — such as being drunk, running a red light, and crashing into your car — you may be awarded punitive damages in addition to your economic and non-economic damages. Texas statutes put a cap on the amount of punitive damages for car accidents at the greater of:
- $200,000 or
- two times the amount of economic damages plus the amount equal to non-economic damages, up to $750,000.
Texas will cap your non-economic damages at $250,000 if your claim is against a government entity.
How Texas Laws Regarding Non-Economic Damages Can Affect Your Case
No matter the amount of non-economic damages you have suffered, there are Texas laws you need to abide by. These include the following:
- Statute of Limitations – There is typically a time limit of two years after the date of the accident to file a personal lawsuit in court. If you miss this deadline, the courts are likely to dismiss your case altogether. (*Nothing herein is intended to be legal advice. It is provided for informational purposes only. Always speak directly to a licensed Texas attorney to understand the exact deadlines that apply to your claims, including the Statute of Limitations.)
- Modified Comparative Negligence – To win your lawsuit, you and your attorney will have to prove that the party you are suing for the accident was negligent and at fault for causing the crash. However, even if you partially contributed to the accident, as long as you are found to be less than 51% at fault, you may still collect the proportion of the settlement that the other party was at fault. For example, if your settlement was for one million dollars and you were found to be 25% at fault, you could still collect $750,000.
Our Attorneys Can Help You Understand Non-Economic Damages
Texas laws regarding non-economic damages are complicated, but you do not have to deal with the legalities of trying to get compensation alone. The car accident lawyers at Terry Bryant Accident & Injury Law will handle all aspects of your case, including making sure it is filed in a timely and proper manner, negotiating with insurance companies and their lawyers, gathering evidence and interviewing witnesses, obtaining expert testimony to prove you were not responsible, and taking your case to court if necessary.
If there is no recovery of damages, there is no fee charged. This is our No Fee Guarantee® to you.
For a free case evaluation, call Terry Bryant Accident & Injury Law car accident attorneys now at (713) 973-8888 or toll-free 1 (800) 444-5000.
Attorney Terry Bryant
Terry Bryant is Board Certified in personal injury trial law, which means his extensive knowledge of the law has been recognized by the Texas Board of Legal Specialization, setting him apart from many other injury attorneys. The 22 years he spent as a Municipal Judge, Spring Valley Village, TX also provides him keen insight into the Texas court system. That experience also helps shape his perspective on personal injury cases and how they might resolve. This unique insight benefits his clients. [ Attorney Bio ]
