Understanding Non-Economic Damages

Non-economic damage calculations vary by jurisdiction. Nolo provides comprehensive guides on both multiplier and per diem methods. Cornell Law explains the legal framework for non-economic damages.

Economic damages are straightforward: medical bills, lost wages, property damage. Non-economic damages compensate for things without receipts: physical pain, emotional distress, loss of enjoyment of life, scarring, and relationship impacts. These damages are real even though they're harder to quantify.

The Multiplier Method

Insurance companies commonly multiply economic damages by a factor between 1.5 and 5, depending on injury severity:

• Minor injuries (soft tissue, quick recovery): 1.5-2x multiplier
• Moderate injuries (fractures, extended recovery): 2-3x multiplier
• Serious injuries (surgery required, long-term effects): 3-4x multiplier
• Severe injuries (permanent disability, disfigurement): 4-5x+ multiplier

Example: $50,000 in medical bills + $20,000 lost wages = $70,000 economic damages. With a 3x multiplier, pain and suffering would be $210,000, for a total claim value of $280,000.

The Per Diem Method

This method assigns a daily dollar value to your pain and multiplies by recovery days. For example, $200/day for 365 days = $73,000 in pain and suffering. The daily rate is often tied to your daily wage—the argument being your pain is worth at least as much as your work.

Factors That Increase Awards

• Permanent injuries or disabilities
• Visible scarring or disfigurement
• Need for future surgeries or ongoing treatment
• Impact on ability to work or pursue hobbies
• Clear liability with egregious defendant behavior

Factors That Reduce Awards

• Pre-existing conditions affecting the same body part
• Gaps in medical treatment
• Social media showing activities inconsistent with claimed injuries
• Comparative negligence (your own fault percentage)

Documenting Pain and Suffering

Strong documentation includes: daily pain journal with specific descriptions, photos showing injuries over time, testimony from family about changes in abilities, mental health treatment records, and evidence of activities you can no longer do.