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Understanding Non-Economic Damages

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Defining Non-Economic Damages

Non-economic damages are a type of compensation awarded in personal injury cases to address losses that don't have a specific monetary value. Unlike economic damages, which cover quantifiable costs like medical bills or lost wages, non-economic damages aim to compensate for intangible losses that impact a person's quality of life.

These damages can cover a wide range of impacts resulting from an injury or accident, including:

  1. Pain and suffering. This encompasses physical discomfort and emotional distress experienced due to the injury.
  2. Loss of enjoyment of life. When injuries prevent a person from engaging in activities they once enjoyed, such as hobbies or sports.
  3. Mental anguish. Psychological effects like anxiety, depression, or PTSD resulting from the incident.
  4. Loss of consortium. Compensation for the impact on personal relationships, particularly with a spouse.
  5. Disfigurement or scarring. When injuries result in permanent physical changes affecting appearance.

The aim of non-economic damages is to provide some form of restitution for these intangible losses, acknowledging that the impact of an injury goes beyond just financial costs. They serve to recognize the full extent of harm suffered by the injured party and to hold the responsible party accountable for all aspects of the damage caused.

How Do You Calculate Intangible Losses?

Unlike economic damages, there's no straightforward formula or bill to reference. Instead, per diem or multiplier methods may be used to calculate non-economic damages:

  • Per Diem method. Some attorneys suggest assigning a daily rate to the victim's suffering and multiplying it by the number of days they've suffered or are expected to suffer.
  • Multiplier method. This involves multiplying the economic damages by a factor (typically between 1.5 and 5) based on the severity of the non-economic impacts.

In some cases, the following factors may also influence the settlement award:

  • Severity and duration of injury. More severe injuries or those with long-lasting effects typically result in higher non-economic damages.
  • Impact on daily life. The degree to which the injury affects the victim's ability to perform routine activities or enjoy life is assessed.
  • Age of the victim. Younger victims may receive higher awards as they must live with the effects for a longer time.
  • Pre-injury quality of life. The contrast between the victim's life before and after the injury is considered.
  • Comparable cases. Lawyers and insurers often look at awards in similar cases as a benchmark.

It's important to note that there's no standardized calculation method in New York. The process often involves a combination of these approaches, along with the persuasive arguments of attorneys and the discretion of the jury or judge. This flexibility allows for awards to be tailored to the unique circumstances of each case, but it also means that outcomes can be less predictable than with economic damages.

Are There Caps on Non-Economic Damages in New York?

No. In New York, there is no cap on non-economic damages, allowing juries to award amounts they deem appropriate based on the specific circumstances of each case. This approach recognizes that the impact of injuries can vary greatly from person to person and seeks to provide fair compensation tailored to each individual's experience.

TheĀ Law Offices of Charles R. Gueli can help you understand what affects your settlement. For help navigating your case and calculating your damages, call (516) 628-6402.

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