Economic losses

Financial and material losses are reimbursed through special damages. These damages involve losses that have known monetary values. For example, one can ask to be compensated for medical bills, transportation fees, or the loss of a car or home. But while it may seem like a mere matter of calculation, economic damages are governed by complex laws and there is often a cap on how much one can claim in economic damages. In the case of lost ability to earn, calculations usually involve the person’s life expectancy, current or possible career, and job potential.

Pain and suffering

Problems often arise when it comes to pain, suffering, and other abstract losses. These losses fall under general damages, which refer to non-material effects of the injury. A person who gets disfigured can claim damages for humiliation, while one who is permanently disabled can be compensated for lost quality of life. In these cases, the judge bases the amount on the evidence presented and sometimes expert witness testimonies. Because the loss is quite subjective, most states impose caps on the dollar amount that can be awarded in general damages.

Punitive damages

Punitive damages are awarded when the breach of duty is proven to be intentional or recklessly negligent, in which case general and special damages are considered inadequate to compensate the victim. These damages are fairly rare and are only awarded in special cases. Unlike compensatory damages, there is usually no cap on the amount of punitive damages, although they seldom exceed 4 times the amount compensatory damages ordered.

This article is not intended as legal advice.

More information available from The Barber Law Firm. Serving clients in the Greater Dallas area.