After an accident, one of the most important things a victim can do is file a personal injury claim or lawsuit for compensation. Damages like medical expenses and lost income are relatively easy to calculate, as there is a clear monetary value attached to these losses. To determine the amount the victim should receive, the bills and receipts must simply be added up. However, non-economic damages are not so straightforward. 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?
There is no one formula that New Jersey courts use to calculate compensation for pain and suffering during a personal injury case. However, there are two common methods that are popular with attorneys, juries, and insurance companies: the multiplier method and the per diem method.
The multiplier method works by first determining the value of the victim’s economic damages. Once their medical expenses, lost wages, property damage, and other losses are added up, the total is multiplied by a number, generally between 1.5 and 5, with 5 representing the most severe injuries that have a profound and long-lasting impact on the individual. The result of this calculation will be the total non-economic damages for pain and suffering.
The per diem method is different and depends on the amount of time the victim is expected to suffer. In this case, a daily rate is assigned based on the severity of the injuries and the impact they have on the individual’s daily life. The daily rate is then multiplied by the number of days the victim is projected to be affected by their injuries.
These are both widely accepted and regarded as fair methods of calculating damages for pain and suffering. 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 worth. 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.
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.
To secure skilled legal advice during your case, reach out to a personal injury attorney today.
