Personal Injury Economic Vs. Non-Economic Damages Explained

Key Takeaways

• Michigan injury victims can pursue both economic and non-economic damages to help cover the losses associated with an accident.
• Economic damages are actual costs paid out of pocket, and non-economic costs are other losses you may have but are difficult to attach a dollar amount to.
• Working with a skilled Michigan personal injury lawyer can help determine your injuries, long-term prognosis, and the overall costs you have endured due to the injury.

Suffering a personal injury can cause physical pain, emotional distress, and significant concerns about the future. Severe injuries can also lead to expensive medical bills, lost wages, and other costs that might add to the stress.

Fortunately, in Michigan, injury victims can pursue compensation to help cover their losses. You can pursue different types of compensation, such as economic damages, non-economic damages, and potentially exemplary damages.

Determining the costs associated with an accident-related injury can be challenging, especially when the future is uncertain. The caring and compassionate personal injury attorneys at Matz Injury Law understand what you are facing and want to help you obtain the compensation that you deserve.

What Are Economic Damages?

Economic damages are compensatory money relating to expenses you have accumulated that are directly related to an injury. Understanding these costs is vital in personal injury cases as these represent the quantifiable financial losses incurred by you due to an injury caused by the other party’s negligence. The following is a general overview of the most common types of economic damages you can pursue.

Medical Expenses

A primary component of economic damages is medical expenses. This covers everything related to your medical treatment or healthcare needs, including but not limited to:

• Doctor appointments
• Hospital bills
• Physical therapy
• Occupational therapy
• Speech therapy
• Medications
• Rehabilitation treatments

Lost Income

If an injury is severe enough for you to lose time from work, you can receive compensatory damages for your lost income. In a scenario where you permanently cannot perform the work you did before, you can also pursue damages for loss of future earning capacity.

Property Damage

In claims where a car or other property was damaged, you can pursue economic damages for repairs, replacement costs, and other expenses related to your loss.

Out-of-Pocket Expenses

Other out-of-pocket expenses accumulated due to accident-related injuries, such as transportation costs to visit medical providers or modifications made to your home to accommodate a disability, can also be included in economic damages.

What Are Non-Economic Damages?

Non-economic damages are not as easy to tally up as economic damages since no dollar amount or receipt is attached to them. However, losses can still be pursued in a personal injury case to compensate for suffering and other factors directly resulting from an accident.

Pain and Suffering

Pain and suffering refers to the physical pain and emotional distress you endure because of your injuries. This includes both short-term and long-term pain and suffering you may experience.

Loss of Enjoyment of Life

If your injury prevents you from enjoying and/or participating in sports, hobbies, or other everyday activities, this can be factored into your non-economic damages.

Mental Anguish and Emotional Distress

It is common for accident victims to experience psychological trauma as an aftermath. Mental anguish and emotional distress refer to conditions such as depression, post-traumatic stress disorder, anxiety, and other emotional issues resulting from an injury.

Loss of Companionship and Consortium

In some cases, injuries directly impact relationships with family members and loved ones. Loss of companionship and consortium refers to the adverse impact on love, companionship, affection, support, and sexual relationship with a spouse.

How Do I Calculate Non-Economic Damages?

Calculating non-economic damages can be tricky because there is no tangible amount attached to your losses. Since the value of non-economic losses is subjective, what many lawyers and insurance companies will do is use a multiplier method.

How it works is that they total your economic damages and multiply it by a number between 1.5 and 5. The number will be decided by a variety of factors, such as length of recovery period, severity of injuries, impact of the injury on daily living, and relevant documentation.

Working with a skilled attorney who knows how to handle the complexities of calculating non-economic damages can be helpful in enhancing your chances of achieving a fair outcome in your personal injury case.

Can Non-Economic Damages Be Limited?

Yes, Michigan does have some limitations on non-economic damages, particularly when it comes to medical malpractice cases. Each year, the state reviews and updates the caps placed on non-economic damages. In these cases, the injured party must demonstrate that they qualify for non-economic damages by establishing that they are:

• Hemiplegic, paraplegic, or quadriplegic, with the total functioning loss of at least one limb due to injuries to the brain or spinal cord.
• Have permanently impaired cognitive capacity, affecting their ability to make “independent, responsible life decisions and permanently incapable of performing the activities of normal, daily living.”
• Suffering from permanent loss or damage to their reproductive organs and unable to have children.

What Are Punitive Damages?

Punitive damages are a different type of damages set apart from compensatory damages, such as economic and non-economic awards. Michigan does not have punitive damages per se but has exemplary damages, which are similar.

If a court orders punitive damages, this is done as punishment for egregious behavior or as a deterrent to others. In Michigan, victims may receive exemplary damages if they can demonstrate the at-fault party acted with malice or willful disregard and harmed their dignity or caused intentional insult.

When Are Economic and Non-Economic Damages Available?

Both types of damages are available for most personal injury cases. It is the burden of the victim to prove their losses relating to car accidents, truck accidents, pedestrian accidents, slip and falls, dog bites, and other types of personal injuries.

How Much Compensation May Be Recovered?

The amount of compensation available for recovery will vary from case to case. Factors that will influence total compensation include the severity of injuries, evidence of monetary losses, and proof of intangible losses.

What is the Process for Claiming Damages?

Pursuing a personal injury lawsuit involves several steps, including filing a claim, gathering evidence, negotiating with the insurance company, and, if necessary, filing a personal injury lawsuit.

Working with an experienced Michigan personal injury attorney is to your advantage because they can deal with the complexities of personal injury claims.

Michigan is a comparative negligence state, which means if the victim is found partially to blame, their compensation will be reduced by the percentage of their fault. A skilled lawyer will know how to approach this and build your case.

How Do I Obtain Fair Compensation for Both Economic and Non-Economic Damages?

To help strengthen your case and maximize compensation, you will want to document all expenses, show evidence to prove intangible losses, and work with a knowledgeable personal injury attorney who is well-versed in Michigan law.

Why Clients Choose Matz Injury Law

Clients often select Matz Injury Law as their legal representative in personal injury cases because of our strong reputation throughout Michigan. Over the decades, our law office has earned a reputation for being personable, transparent, highly communicative, and willing to fight for what aligns with our clients’ interests.

If you choose Matz Injury Law, you’ll quickly see how we put your needs first. Over the decades, our attorneys have logged hundreds of thousands of miles visiting our clients throughout the Upper and Lower Peninsulas. To date, we’ve earned more than $300 million for our clients.

Testimonials

“Jared Matz very professional made this process very easy we trusted him and he delivered, very easy to communicate with him and he made sure that we understand everything he went over every little detail and keeps you updated every step of the way. Thank you so much for getting the settlement as fast you did” – DA.

“Mr. Matz was great helping me after my auto accident. I had no idea what was going on or where to turn but he led me the correct direction and to the right kind of doctors I needed to treat my injuries. He was there to answer any questions and still is, even if it’s not to do with the case he represented me on. His son is very helpful and caring also!” – Judy W.

“If you need an injury attorney then Steve Matz is the attorney you want. He went above and beyond his responsibilities with my case. My case had several different parts (uninsured driver, medical, employer, and insurance company) and Steve was able to assist with most and the ones he couldn’t he was able to give us another attorney name. He is a great listener and he gets right to the point with any questions. I would recommend Steve to anyone – thank you so much Steve for all your help” – Chris N.

Need Help Understanding Your Personal Injury Claim? Call Us Today for a Free Consultation.

Moving forward with mounting medical bills, extended wage loss, an inability to work, and uncertainty about your financial future can be difficult. The caring and compassionate attorneys at Matz Injury Law understand the challenges injury victims face. We want to help. Our law firm will approach your case in a way that prioritizes your interests. Call Matz Injury Law at 1-866-22Not33 to schedule a free consultation or fill out our online contact form.