When we talk about personal injury cases, there’s often mention of “damages”. But what are damages, and what’s the difference between compensatory and punitive damages?
If you’re confused by the terminology, don’t worry. We’re here to help. Below, our personal injury attorneys explain how damages work. We’ll cover the key differences between compensatory and punitive damages, and when you might claim these.
What Are Damages in a Personal Injury Claim?
Damages are a monetary award issued to accident victims. The goal is to compensate an injured person for the hurt and loss (i.e. the “damage”) they sustained. Although no amount of money can make up for what happened, it’s still a civil legal remedy you could be entitled to.
- To be clear, you can only claim damages if you have suffered losses or injury of some kind. If there’s no harm caused, then there’s no compensation claim.
- There’s normally a time limit for claiming damages. In CA, you typically have two years from the accident date to make a claim. Other time limits may apply depending on the case and who you are suing.
Personal injury damages are separate from insurance settlements. Our attorneys can explain the differences in more detail.
Calculating Damages
Damages should “restore” victims back to the position they were in financially before the accident. So, generally, you calculate damages based on a person’s losses.
These losses include expenses we can measure, such as medical bills. But they also include emotional harms, such as pain and suffering, which are harder to quantify. That’s why it’s so crucial to consult an attorney – it’s vital that you know the true value of your compensation claim.
Are there different types of damages? Yes. Let’s consider the difference between the two major categories: compensatory and punitive damages.
Compensatory Damages
Compensatory damages are the most common type of damages. They compensate you for your losses, rather than punish the defendant for harming you.
There are two basic types of compensatory damages: economic and non-economic damages.
- Economic: Economic damages are tangible financial losses. In other words, we can attach a price tag to them.
- Non-economic: Non-economic damages (“general” damages) have no price tag. They’re subjective and don’t usually involve specific sums of money.
Compensatory damages include:
- Medical bills
- Pain and suffering
- Loss of enjoyment/consortium
- Therapy fees
- Lost wages
- Property repair bills
- Related out-of-pocket expenses
- Funeral expenses (in wrongful death claims)
California doesn’t usually “cap” or limit compensatory damages. The exception is certain medical malpractice lawsuits which have a $350,000 limit.
Claiming Compensatory Damages
Who can claim compensatory damages? The criteria are as follows.
- You must be injured in an accident (or suffer financial loss).
- The accident must be someone else’s fault.
- You must file your claim within the time limit or else your right to claim expires.
Our attorneys can explain if you’re eligible to claim damages.
What Are Compensatory Damages Worth?
It all depends on what you can prove. No two cases are alike! But the more evidence you have, the easier it is to get the compensation you deserve. Evidence includes:
- Proof of lost wages e.g. letter from employer, pay stubs
- Medical records
- Photographs or video evidence
- Property repair estimates
- Accident report
Don’t accept a settlement offer without consulting an attorney first. Otherwise, there’s a risk you won’t get what your case is truly worth.
Punitive Damages
Compensatory damages compensate accident victims. Punitive damages punish those responsible for the harm caused. They’re a deterrent, designed to stop others from committing similar actions.
- Punitive damages (exemplary damages) are less common than compensatory damages.
- In California, there’s no cap on punitive damages.
- When awarded, punitive damages can far exceed compensatory damages.
Who Can Claim Punitive Damages?
When might you receive punitive damages? As stated, they are less common as they’re a punishment (which is more akin to criminal law).
To claim punitive damages, it’s not enough to show that you’re injured due to someone’s negligence. You must show that the defendant acted fraudulently or maliciously. Courts will require clear and convincing evidence of fraud or malice.
Here are some examples of when you might claim punitive damages.
- A pharma company release a drug knowing it didn’t pass certain safety checks. Someone is grossly injured as a result.
- Someone suffers a severe allergic reaction in a restaurant. The owners knowingly served the victim from a potentially contaminated kitchen.
- A vehicle manufacturer discovers a potentially fatal airbag defect. They choose not to recall vehicles, and someone is catastrophically injured.
Punitive damages are awarded alongside compensatory damages. You don’t need to claim one or the other.
Value of Punitive Damages
It’s much harder to place a price tag on punitive damages. Not only is this because they’re unusual, but because they’re awarded at the court’s discretion.
There’s no set formula for calculating punitive damages. However, our team understands how to value what you might sue for, should you have a claim.
Key Differences Between Punitive and Compensatory Damages
We can summarize the differences between punitive and compensatory damages as follows.
- Compensatory damages compensate victims for their losses. Punitive damages punish wrongdoers for their actions.
- To claim compensatory damages, you only need to prove negligence. Claiming punitive damages means proving fraud or malice.
- Valuing compensatory damages means using set formulas e.g. lost wage calculations. There’s no clear formula for valuing punitive damages.
Discuss a Compensation Claim with Personal Injury Attorneys in California
There’s no doubt that valuing how much a claim is worth is a complex matter. That’s why you should always consult an attorney before filing a lawsuit or accepting an offer. Otherwise, you could settle for less than you deserve.
At the May Firm, our experienced attorneys handle complex personal injury cases every day. We can explain what damages are claimable and what your case is worth. And we’ll handle every aspect of your claim so you can focus on recovery.
We offer free consultations to every prospective client. And if your case is unsuccessful? We don’t charge anything. So, there’s nothing to lose by discussing your situation with our team!
Call the May Firm now or get started online. We look forward to welcoming you into the May Firm family.
