When someone is injured in an accident caused by another party's reckless or careless actions, they may face significant expenses. Medical treatment of their injuries can cost thousands of dollars, or even hundreds of thousands of dollars in some cases. The injured person can be unable to work while recovering from their injury. In some cases, they can suffer permanent injuries that prevent them from ever being able to work again after the injury. Consult with a car accident attorney for legal assistance in seeking compensation for lost wages and future earning potential. They can face property damage, payment for household services they can no longer perform on their own, needed modifications for their home or vehicle to accommodate the injury, or even placement in a nursing home or the provision of home healthcare services if they can no longer perform self-care tasks independently. While these expenses are undoubtedly steep, often the most significant impacts of the injury for the sufferer are the psychological impacts, such as the inability to get through a day without experiencing pain, the inconvenience of having to rely on others for assistance and having one's daily schedule and routine dictated by medical appointments and other activities related to the medical treatment of their injury. They must handle the emotional distress of the traumatic accident that resulted in their injury and the distress of incurring expenses and being unable to work. At the same time, the routine monetary demands of life continue. The personal injury claims process allows those injured to seek compensation for their injury expenses (economic damages) and psychological impacts (non-economic damages). Because physical and emotional hurt and suffering are the main reason for seeking this compensation, non-economic impacts are commonly known simply as "pain and suffering." There is often a lot of confusion about how to calculate the value of the psychological portion of an injury claim. While economic damages are calculated by adding the value of the claimant's various monetary expenses, pain and suffering do not generally result in a receipt or a bill for services. Here is a look at the importance of pain and suffering in a personal injury claim and how the value for these impacts is calculated.
The Importance of Non-Economic Damages to Your Claim's Value
According to a study published by the Washington University Law Review, pain and suffering damages generally account for 50 to 80 percent of the overall compensation a jury awards to a personal injury claimant if their case is determined in trial. Although most personal injury claims are resolved through a settlement rather than through litigation, pain and suffering still account for a large portion of the claim. As explained by the Center for Justice & Democracy at New York Law School, what is truly valuable for most people is the ability to enjoy their lives and live free of disabling physical and emotional pain. The loss of the enjoyment of life commonly suffered after a person has incurred an injury and is often included in injury claims is experienced in several ways relating to how much the injured party can enjoy all aspects of their lives, including relationships with their spouse, children, and other family members, the ability to pursue or continue a meaningful career, and even the ability to help others. Further, the compensation received for expenses usually does not go to the claimant but to medical providers that were not necessary before the accident. Pain and suffering damages, however, make up the largest portion of compensation the claimant will receive after the bills from their case are paid.Factors Considered When Determining Pain and Suffering Damages
While there are several methods that personal injury lawyers use to calculate the value of a case, each method requires the attorney to consider certain factors in the case, such as the ones listed below.The Amount of Available Insurance Coverage
Most personal injury claims are paid through liability coverage provided in an insurance policy that the at-fault party purchased. For example, if a negligent driver caused a car accident and injured other people, the claim would be filed against the at-fault driver's auto liability coverage. Most states require a minimum amount of insurance in certain circumstances, such as when a driver registers their vehicle to be legally operated on public roadways. Unfortunately, not everyone complies with insurance laws. As the Insurance Information Institute explains, around one in eight U.S. drivers lack insurance. Frequently, even those with the required minimum insurance levels for their state do not have enough coverage to fully compensate a seriously injured person. Attorneys consider the amount of available insurance when valuing the claim, as this is usually the entire amount of compensation available. However, they will commonly look at other potential sources of liability or even at the claimant's own insurance policies to determine if additional funding for the claim is available through these other resources.The Severity of the Injury
More severe injuries generally result in higher valued claims simply due to increased expenses the sufferer likely incurred for additional medical care, hospitalization, and extended periods in which the injury prevents the claimant from earning an income. All of these increased expenses indicate an increase in physical and emotional suffering, as the claimant is often prevented from carrying on with the normal routines due to the frequency of medical appointments, the impact of pain, and medications used to treat pain, and even greater difficulties with accepting one's physical image or abilities due to a severe injury.The Frequency of Medical Visits
According to research from Harvard Medical School, as reported by Boston Magazine, the average doctor's appointment takes 121 minutes, including travel, waiting in the lobby, completing paperwork, and other activities. However, the time a person spends with their doctor during the appointment only accounts for about 20 minutes. People injured in accidents commonly have more than one injury to contend with and can be treated by multiple healthcare professionals, including their primary physician, specialists, imaging techs, physical therapists, and more. Each of these appointments requires planning, transportation, and management of the other demands of life. Harvard's research revealed that each doctor's appointment costs an average of $43 in time lost from work and other activities. This amount was even higher for minority patients, who often faced longer travel, wait, and administrative times than white patients up to 25 percent longer in some cases.The Permanence of the Injury
It stands to reason that a permanent injury will typically result in greater psychological impacts than a temporary one. Permanent injuries can cause chronic pain, making it difficult for the sufferer to complete even routine tasks, much less enjoyable ones such as holding their children or grandchildren or participating in physical hobbies such as climbing and hiking. Further, these injuries commonly cause complications that require additional medical treatment throughout the remainder of the sufferer's life and place them at risk for premature death.The Clarity of Liability
In cases where one party was clearly liable, insurance companies tend to be more receptive to a claim demanding compensation for pain and suffering than they are when considering a claim in which liability is in dispute. Among the many important services that an accident injury lawyer provides for their client is a gathering of evidence and documentation to not only paint a clear picture for their insurer as to how and why their insured was liable for the accident but also a clearer picture of the type of psychological impacts the claimant has suffered as a result of the insured's negligence.State Laws with Non-Economic Damage Caps
Eight states place caps on the amount of pain and suffering damages that a personal injury claimant is eligible to seek through their claim Alaska, Colorado, Hawaii, Idaho, Maryland, Mississippi, Ohio, and Tennessee. Seven other states have recently found caps on non-economic damages to be unconstitutional, the Center for Justice & Democracy reports. Currently, there are 42 states (and DC) where claimants are free to seek as much compensation for the psychological impacts of their injury as the insurance resources can compensate.Standard Methods for Calculating Pain and Suffering
So, how are pain and suffering calculated? Attorneys use several methods (in addition to the factors listed above) to establish a value for this aspect of the claim.The Multiplier Method
The multiplier method requires the attorney to fully account for the expenses associated with the injury to determine the economic portion of their compensation. The overall total of their economic claim is then multiplied by a number to arrive at a total for the non-economic (pain and suffering) portion of the claim. The more severe the injuries are, the higher the multiplier used.The Per Diem Method
The term "per diem" is Latin for "per day." With this method, a monetary value is assigned to each day that the claimant has had to live with the pain and suffering associated with the accident. Because insurance companies and ultimately judges or juries will question an arbitrary number used in the calculation, if the claimant was employed at the time of their accident, the attorney will assign their average daily earnings as the daily amount. For example, suppose the accident caused the claimant to suffer pain for 150 days. In that case, the attorney can divide their average yearly income by 250 working days per year and then multiply the daily amount by 150 days to arrive at a value for pain and suffering.An Attorney Can Properly Value Your Claim
While there are various "compensation calculators" available online to help those injured to determine how much their claim is worth, there are many reasons why hiring an experienced personal injury lawyer is vital to your case, including the assurance that the value of your claim is appropriate. Personal injury lawyers receive years of education and experience to provide their clients with quality legal services, and they have a deep awareness of the types of impacts that can be included in the calculation of pain and suffering damages. As noted, a personal injury lawyer in San Diego and their legal team will work to discover all the insurance resources that can compensate for the claim. If the evidence points to additional liable parties such as a drinking establishment that overserves a patron who then leaves the bar and causes an accident due to intoxication then the attorney can also pursue compensation from that entity's insurance policy. If the claimant has insurance policies to help compensate for the claim, the attorney will consider accessing those policies if needed. Most personal injury claims resolve through settlements, not litigation. However, out-of-court settlements commonly feature awards less than the established value of the claim they are resolving. Not only will an attorney gather the documentation needed to justify the claim's worth, but they can also negotiate with the insurer to convince them to increase the value of their offer so that it is closer to the amount demanded through the claim. Additionally, they can provide guidance to help the claimant understand how the claim was valued and the amount of compensation that would constitute a fair settlement. Because the claimant not the attorney ultimately decides whether to accept an offered settlement or proceed with litigation, having a source of accurate information about the value of their claim can help them protect their best interests.
