Understanding How Damages Are Calculated and Awarded in Personal Injury Cases

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An image of a car accident in the rearview mirror begging the question how are damages calculated
Ever Wonder How Damages Are Calculated?


When accidents happen and injuries occur due to the negligence of another party, the legal system allows victims to seek compensation for their losses. This compensation, known as “damages,” is designed to help individuals recover financially and emotionally from the harm they’ve suffered. In this blog, we’ll delve into a few of the intricacies of how damages are calculated and awarded in personal injury cases, shedding light on the factors that influence the outcome of such claims.

Types of Damages

Damages in a personal injury case can be categorized into two main types: economic and non-economic.

  1. Economic Damages: Economic damages are tangible, quantifiable losses that have a direct financial impact on the victim. These include:
    • Medical Expenses: This covers the costs of medical treatment, hospital stays, surgeries, medications, and ongoing rehabilitation or therapy.
    • Lost Wages: If the injury causes the victim to miss work, they may be entitled to compensation for the income they would have earned during that period.
    • Property Damage: In cases where property is damaged in the accident (e.g., a car crash), the cost of repair or replacement is included in economic damages.
    • Future Expenses: If the injury results in long-term or permanent disability, future medical costs and potential lost earning capacity can also be factored into economic damages.
  2. Non-economic Damages: Non-economic damages are less concrete and relate to the emotional and psychological impact of the injury. These include:
    • Pain and Suffering: Compensation for the physical pain and emotional distress experienced as a result of the accident and subsequent injury.
    • Emotional Distress: This covers psychological effects such as anxiety, depression, and post-traumatic stress disorder caused by the accident.
    • Loss of Enjoyment of Life: If the injury leads to a diminished quality of life, victims may be compensated for their inability to engage in activities they once enjoyed.
    • Loss of Consortium: In cases where the injury affects a victim’s relationships, their spouse or family members may be eligible for compensation due to the loss of companionship and support.

Factors Influencing How Damages Are Calculated

Several factors come into play when calculating and awarding damages in a personal injury case. It’s important to note that each case is unique, and the following factors are considered in determining the appropriate compensation:

  1. Severity of Injury: The extent and severity of the injury plays a significant role. More severe injuries that result in lasting physical or emotional effects typically lead to higher compensation.
  2. Medical Expenses: The total cost of medical treatment, including past and future expenses, directly impacts the economic damages awarded.
  3. Lost Income: Compensation for lost wages considers the time the victim missed from work due to the injury, as well as the potential impact on future earning capacity.
  4. Impact on Daily Life: Non-economic damages are influenced by how much the injury affects the victim’s ability to perform daily activities and enjoy life.
  5. Comparative Fault: If the victim shares some degree of fault for the accident, the compensation may be reduced based on the principle of comparative fault.
  6. Pre-existing Conditions: The existence of pre-existing medical conditions may affect the amount of compensation, as the injury’s impact might be more challenging to separate from the existing condition.
  7. Negligence and Liability: The degree of negligence on the part of the responsible party and their liability for the accident can influence the overall compensation amount.

Calculating Damages

Calculating damages involves assessing both economic and non-economic losses. Economic damages are relatively straightforward to calculate as they involve quantifiable expenses. Medical bills, receipts, and documentation of lost wages are used to determine the total economic loss.

Non-economic damages, however, are more subjective. There is no fixed formula, but various methods are used to estimate these losses. One common approach is the multiplier method, where economic damages are multiplied by a factor (often between 1.5 and 5) to account for non-economic losses. The exact multiplier depends on the severity of the injury and the impact on the victim’s life.


Understanding how damages are calculated and awarded in personal injury cases is essential for anyone seeking compensation after an accident. While the legal system aims to provide fair compensation for victims, the complexities of calculating damages require the expertise of a skilled personal injury attorney. If you or a loved one have suffered an injury due to someone else’s negligence, consulting an experienced attorney like David M. Kennedy can help ensure that you receive the compensation you deserve. Remember, every case is unique, and a thorough evaluation of your circumstances is crucial for accurately assessing damages and pursuing a successful claim.

If you’ve been the victim of an accident, reach out to a board-certified, Super Lawyer attorney at the Law Office of David M. Kennedy. With extensive experience in personal injury cases, compassionate support, and a proven track record of success, he will fight for your rights and fair compensation. Schedule your free consultation today and let him navigate the complexities of your case, ensuring you receive the justice you deserve. Don’t wait; take the first step towards securing the legal representation you need. Call (903) 819-0720 or click here to email our law office.

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David M. Kennedy

David M. Kennedy has over 30 years experience representing individuals and businesses in matters of civil litigation, especially personal injury and wrongful death. He is licensed in Texas, Oklahoma and Colorado.


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Contact Us

Call Us 903-819-0720

Law Office of David M. Kennedy, P.C.

320 N. Travis St., Suite 207
Sherman, TX 75090

Email: Click Here

Map and Directions

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