Pain and suffering is a common form of non-economic damages that victims of an accident caused by negligence of another party can seek as part of a lawsuit in New Jersey. Typically, Monmouth County courts, and those across the state, will utilize one of two common methods to determine pain and suffering compensation for a victim, known as the per diem and multiplier methods. While there is no fixed formula, understanding the factors considered by the courts when determining damages is critical. Pain and suffering are important non-economic damages that allow victims to recover compensation for physical discomfort and emotional distress experienced as a result of an accident. To learn how pain and suffering compensation is calculated, continue reading and work with a knowledgeable New Jersey personal injury lawyer during your case.
How Is Compensation for Pain and Suffering Calculated in NJ?
In New Jersey, pain and suffering compensation is not strictly determined by a single formula. Instead, the courts, attorneys, and insurance companies utilize two common methods to determine compensation for non-economic damages: the multiplier method, which assigns a number between 1.5 and 5 to suffering before multiplying the economic damages by this number, and the per diem method, which assigns a daily dollar amount for each day of the victim’s recovery.
The Multiplier Method, Explained
- The multiplier method works by first determining the value of the victim’s economic damages, which include:
- Medical expenses
- Lost wages
- Property damage
- Once these are determined, a multiplier between 1.5 and 5 will be determined
- Higher multipliers indicated more severe or permanent damage, chronic disability, and significant impacts on the victim’s life
- Example:
- $20,000 in economic damages, multiplied by 3 (moderate impact on the victim) = $60,000 in pain and suffering
The Per Diem Method, Explained
- A daily dollar value is assigned to the victim’s pain and suffering
- The daily rate is multiplied by how many days it takes the victim to recover or until maximum medical improvement is achieved
- This is often determined by:
- Daily wages
- Reasonable value of pain and discomfort
- The length of the recovery period
- Example:
- Victim receives $200/day for 100 days = $20,000 in pain and suffering
What Factors Influence Pain and Suffering Compensation in New Jersey?
In Monmouth County and throughout New Jersey, claims are evaluated based on local procedure, regional settlement patterns, and the credibility and strength of evidence. As such, Claims that arise in Aberdeen may have a different value than those that arise in Long Branch due to the different venue and jury.
Courts and insurance companies will consider a variety of factors when determining the value of a pain and suffering settlement. The most notable consideration is the severity of the injury. The more severe the damage, the higher the settlement will be. It is also important to consider the ways in which the injury affects the victim’s ability to work, perform daily tasks, cultivate relationships, engage in hobbies, and more.
Key Factors Considered
- Severity of physical injuries
- Length and difficulty of the recovery
- Whether an injury causes permanent disability or chronic pain
- The impact on the victim’s ability to work and earn a living
- The impact on the victim’s relationships
- Reduced quality of life
- Emotional distress
- Consistency of medical treatment and documentation
How Do Insurance Companies Calculate Pain and Suffering?
If you are seeking pain and suffering compensation through the insurance company of the negligent party responsible for your accident, it’s important to understand that most companies utilize similar calculation methods. However, you’ll find that the primary goal of these companies is to reduce the payout for victims.
How Insurers Typically Approach Claims
- Use the multiplier method based on medical expenses
- Analyze medical records for severity and consistency
- Evaluate for risk of litigation
- Typically, extend lowball settlement offers first
- May be adjusted based on negotiations and legal pressure
Does NJ Cap Non-Economic Damages?
Some states put limitations on the amount of compensation an individual can recover when it comes to non-economic or punitive damages. However, New Jersey does not cap pain and suffering damages in most personal injury cases. While punitive damages are capped at five times the compensatory award or $350,000 (whichever is greater), pain and suffering have no limitation.
How Long Do You Have to File a Claim in New Jersey?
In New Jersey, including Monmouth County and the surrounding communities, the statute of limitations for personal injury claims is generally two years from the date on which the injury occurred. As such, if you fail to file on time, you are generally prohibited from pursuing compensation, even if negligence and damages are obvious.
Contact an Experienced Monmouth County Personal Injury Firm
If you have suffered damages as a result of another person’s negligence, whether you were injured by a drunk driver in Long Branch or slipped and fell in an Aberdeen grocery store, working with the Falcon Law Firm, LLC is in your best interest. Our team understands how difficult it can be to fight for the compensation for the non-economic damages you deserve. To secure skilled legal advice during your case, contact a personal injury attorney today.
