When you get hurt because of someone else’s mistake, the impact is not just about money. Sure, you have hospital bills and lost wages, but what about the pain you feel every day? What about the stress, the frustration, or the fact that you can’t enjoy life the way you used to? These are called non-economic damages in personal injury (PI) law, and figuring out their worth isn’t easy.
Two common methods are used to calculate these damages: the multiplier method and the per diem method. Personal injury attorneys at Schuerger Shunnarah Trial Attorneys will help you understand how the two methods work.
But first, let’s break them down:
What Are Non-Economic Damages?
Non-economic damages are the losses you can’t measure with a receipt. They include:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Loss of companionship
Unlike economic damages, which cover things like medical bills or lost paychecks, these damages are subjective. That means it’s hard to put a clear price tag on them. For instance, how much is a sleepless night caused by pain worth? How do you value the sadness you feel because you can’t play with your kids anymore? That’s where these two methods come in.
The Multiplier Method
How does the multiplier method work?
The multiplier method is pretty straightforward. You take your total economic damages (like medical costs and lost income) and multiply that amount by a number, usually between 1.5 and 5. This number is called the multiplier. The more severe your injury, the higher the multiplier.
What affects the multiplier?
Several factors help decide the multiplier:
- How serious your injury is
- How long it takes to recover
- Whether the injury causes long-term or permanent issues
- The emotional and mental toll
Example of the multiplier method
Let’s say your total medical bills and lost wages come to $20,000. If your injury is serious, a multiplier of 3 might apply. Here’s the math:
$20,000 x 3 = $60,000.
That $60,000 would be your non-economic damages.
Advantages and limitations
The multiplier method is simple, which is why insurance companies and courts often use it. It gives a rough idea of what your pain and suffering are worth. But the downside? The multiplier itself is subjective. Two people might look at the same case and choose different numbers, which can make things tricky.
The Per Diem Method
How does the per diem method work?
“Per diem” means “by the day” in Latin. With this method, you assign a daily monetary value to your pain and suffering. Then, you multiply that amount by the number of days you’ve been affected by your injury.
How do you decide the daily value?
Most people use their daily wages as a starting point. The idea is that if you work for a certain amount each day, then dealing with pain should be worth at least that much. Some cases may use other reasonable amounts, depending on the situation.
Example of the per diem method
Imagine you decide that your daily pain and suffering are worth $150. If it takes you 100 days to recover, here’s the calculation:
$150 x 100 = $15,000.
That $15,000 would represent your non-economic damages.
Advantages and limitations
The per diem method makes sense because it assigns your suffering to a daily amount. It’s easier to understand, and it feels more personal. However, it doesn’t work as well for injuries that last a lifetime. What happens when the days never stop? Assigning a daily value can also be tough, as everyone’s experience is different.
Which Method Works Best?
So, which method should you use?That depends on your situation. The per diem method might make more sense if your injury heals over time. If your injury is severe or long-term, the multiplier method might be more accurate.
A few things will influence the choice:
- The severity of your injury
- How long you’ll deal with the pain
- How strong the evidence is (like medical records or expert opinions)
- The court or insurance company handling the case
Often, a personal injury lawyer will guide you on which method to use. They look at all the details to make sure your claim is fair and reasonable.
Other Things to Keep in Mind
When dealing with non-economic damages, there are a few other things you should know:
1. Some states have limits
In some places, there’s a legal cap on non-economic damages. That means you can’t get more than a certain amount, no matter how bad your injury is.
2. Documentation is key
The more proof you have, the better. Keeping a pain journal can help show what you go through every day. Therapy records or statements from family members can also explain how the injury affects your life.
3. Juries and insurance companies can see things differently
Non-economic damages are subjective, so one person might value your claim higher or lower than another. That’s why having strong evidence matters.
The Final Verdict!
Non-economic damages may not come with a receipt, but they are just as real as any other loss. Whether you use the multiplier method or the per diem method, the goal is the same: to put a fair value on the pain, suffering, and emotional toll caused by your injury. While the process isn’t perfect, it helps ensure you get the compensation you deserve for everything you’ve been through.