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San Diego Car Accidents & Injury Lawyers

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What are Economic Damages?

Accidents can occur unexpectedly, and unfortunately, they happen all too often in California. Whether it’s a car accident, a construction site incident, or medical malpractice, injuries can be severe and have a significant impact on an individual’s life.

If someone else caused the injury, the injured party may be entitled to damages. To ensure that they receive just compensation, it’s essential to have a reasonable estimate of the case’s value. This information will enable the personal injury attorney to litigate the case in court or negotiate a fair settlement.

In California, two types of damages may be awarded to the injured party: compensatory and punitive damages. Compensatory damages aim to compensate the injured party for losses resulting from the injury. This includes economic damages, such as medical expenses and lost wages, as well as non-economic damages, such as pain and suffering and loss of consortium.

Punitive damages, on the other hand, are intended to punish the defendant for their conduct rather than compensate the injured party for their losses. They are awarded in cases where the defendant acted with malice or extreme negligence.

Understanding the different types of damages available can help individuals seek the appropriate compensation they deserve and hold the responsible party accountable for their actions.

What are Economic Damages in a Personal Injury Claim? 

Economic damages in a personal injury case are typically the financial losses incurred by the victim as a result of the injury. These damages are often calculated based on the actual costs associated with the injury, and may include the following:

  1. Medical expenses: This includes all costs associated with medical treatment, such as hospital bills, prescription medication, rehabilitation, and ongoing care.

  2. Lost wages: If the injury prevents the victim from working, they may be entitled to compensation for lost wages or income, both current and future.

  3. Property damage: If the injury resulted in damage to personal property, such as a vehicle or other possessions, the victim may be entitled to compensation for the cost of repair or replacement.

  4. Loss of earning capacity: If the injury prevents the victim from earning as much as they could have in the future, they may be entitled to compensation for the loss of earning capacity.

  5. Funeral expenses: In cases of wrongful death, the victim’s family may be entitled to compensation for the cost of funeral and burial expenses.

Overall, economic damages are intended to compensate the victim for the financial losses incurred as a direct result of the injury.

What are Compensatory Damages in California? 

Compensatory damages are intended to provide compensation to the plaintiff for the losses they have suffered due to an injury or accident. The primary goal of compensatory damages is to restore the plaintiff to the same position they were in before the injury occurred.

In California, compensatory damages are divided into two categories:

  1. Economic damages: These damages are designed to reimburse the plaintiff for financial losses incurred as a result of the accident or injury, including medical bills, lost wages, and property damage.

  2. Non-economic damages: These damages are intended to compensate the plaintiff for non-financial losses such as pain and suffering, loss of companionship, and other subjective losses.

Punitive damages are a less common type of damages and are meant to punish the defendant for their behavior, rather than compensate the plaintiff for their losses. These damages are typically awarded in cases where the defendant’s conduct was particularly egregious or reckless.

How are Medical Damages Calculated? 

In California, individuals who have been injured are entitled to receive compensation for the reasonable value of medical care and services that are required as a result of the defendant’s actions. This includes expenses for past, current, and future medical treatment.

Calculating past and current medical expenses is typically straightforward, as documentation of medical bills and related costs is often available. However, estimating future medical costs can be more challenging, but it is critical to obtain a reliable estimate. Once a judgment is awarded or a case is settled, it is not possible to request additional damages.

To accurately assess future medical expenses, a medical expert may be hired by the plaintiff’s attorney. This expert will consider many factors, including surgical procedures, diagnostic tests such as blood tests, X-rays, and MRIs, prescribed pain medications, future medical appointments, assistive devices like wheelchairs or prosthetics, assisted living, counseling, and long-term care.

The medical expert will review the anticipated expenses and factor in inflation to obtain a final estimate. Other factors such as age, the individual’s health before the injury, and the quality of medical care in their area will also be considered.

Once the medical expert has completed their calculations, they will discount the amount to reduce future costs to their present value. This ensures that the plaintiff receives adequate compensation for future medical expenses while taking into account the time value of money.

How is Lost Income Calculated? 

In California, lost income is categorized into two types: loss of employment, which includes both past and future wages, and loss of business or employment opportunities, which is also known as loss of earning capacity.

Calculating past lost wages is relatively straightforward, but it can become complicated for individuals who earn overtime or have variable monthly incomes, such as the self-employed.

Estimating future lost wages and loss of earning capacity can be challenging and requires consideration of several factors. One of the most critical factors is age. For instance, a young individual who owns a thriving business would have a different earning potential than a person who planned to retire shortly before their injury.

The future prospects of the industry in which the individual works are also relevant. If they work in a declining industry with limited growth potential, their earning capacity may be lower than if they work in a booming industry.

The potential for raises and promotions within the individual’s job is also significant in determining their future earning capacity. Additionally, if the individual is permanently injured, their capability to work in their chosen field may be reduced or eliminated. Other factors may include the individual’s education level, job skills, work experience, and their overall health status.

By taking into account all of these factors and more, an accurate estimate of lost wages and loss of earning capacity can be obtained, helping to ensure that the injured party receives just compensation.

Let Our Personal Injury Attorneys Help You Navigate Your Compensation

At HHJ Trial Attorneys, we understand the stress that a personal injury claim can take on any individual. If you feel confused or overwhelmed at determining what type of compensation that you may be entitled to, we encourage you to get in touch with us today and learn more! We are always here for you and will fight with you throughout the duration of your case. 

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