How Are Compensatory Damages Calculated in Alabama?

Compensatory damages in Alabama cover all the financial and personal losses you suffer due to someone’s negligence. Unlike punitive damages, these damages compensate you for what you’ve lost. The money awarded is not meant to punish the at-fault party for their gross negligence or other egregious misconduct.

Compensatory damages encompass economic and non-economic damages. They range from medical expenses and lost wages to intangible losses like pain and suffering. The damages you’re entitled to receive will vary, depending on the facts of your case. An experienced personal injury attorney in Alabama can review your claim and help you understand what to expect.

What Are the Two Different Types of Compensatory Damages?

There are two broad categories of compensatory damages: economic damages, which are measurable financial losses, and non-economic damages, which encompass intangible personal losses. It’s essential to understand each category.

Economic damages are relatively easy to calculate. You can use documentation such as pay stubs, receipts, and medical invoices.

The following are examples of economic damages in a personal injury lawsuit:

• Medical bills, such as medical records of hospital stays, prescription medication, surgeries, rehabilitation costs, physical therapy, and other evidence of other medical care. When cases involve severe injuries, doctor’s bills can be significant.
• Lost wages, including lost earnings due to missed work and future lost or diminished future earnings brought on by a victim’s injuries.
• Property damage, such as repairing or replacing a car after an accident.

The dollar value of non-economic damages may not be proven through documentation. Often, these damages are awarded based on testimony.

They include the following:

• Physical pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Disfigurement
• Disability or physical impairment.

Because non-economic damages are intangible losses, you cannot calculate them by adding receipts or projecting future costs. An experienced attorney can use several models to calculate non-economic damages to help an accident victim pursue fair compensation for the losses that an accident caused them to suffer.

What Factors May Be Used to Calculate Your Compensatory Damages?

Several different factors affect how much you may pursue in compensatory damages, such as the following:

• Severity and nature of the injury
• Past, ongoing, and future care needs
• Loss of earning potential
• Inability to work
• How an injury affects overall quality of life
• Pre-existing conditions
• Age and health.

In addition to considering these factors, you should know that Alabama is one of the few states with a strict contributory negligence rule. Under this rule, if you share any fault for your injuries, even slightly, you cannot recover damages. So, if you file a personal injury claim, you need an airtight case — and help from an aggressive, experienced personal injury attorney.

Contributory negligence has a few exceptions. It does not apply to children under 14, and children under 7 years old cannot be found to be negligent. The rule also doesn’t apply to plaintiffs with mental handicaps. Finally, suppose the defendant was reckless and knew their behavior could lead to harming someone else (for example, drunk driving). In that case, you may still recover damages even if you contributed to your accident.

Ultimately, the best way to determine the damages you may receive in a personal injury lawsuit is to consult an experienced Alabama personal injury lawyer. They can evaluate your claim, estimate damages, and explain your legal options.

What Are the Different Methods for Calculating Non-Economic Damages?

Because non-economic damages lack a direct financial value, courts and insurance companies use varying methods to estimate what is fair compensation. The two most common approaches for calculating compensatory damages when they are non-economic damages are the multiplier and per diem methods.

Multiplier Method

This method calculates non-economic damages by multiplying the total economic damages by a factor, usually ranging from 1.5 to 5. The multiplier typically depends on factors like the injury’s long-term impact, the extent of the pain and suffering, and whether the victim suffered a permanent disability or disfigurement. In other words, the worse the suffering, the higher the multiplier.

For example, you incur $50,000 in economic damages, including medical expenses and lost wages. If a multiplier of three is used based on the severity of the injury, the non-economic damages would multiply $50,000 by three. You would be eligible for up to $150,000 in noneconomic damages and $50,000 in economic damages.

Per Diem Method

This method assigns a daily monetary value to your pain and suffering. That value is multiplied by the days you will be affected by your injuries. This method provides a helpful way to calculate non-economic damages when there’s a clear recovery timeline. For example, broken bones can be painful and dramatically impact mobility, but they have a predictable healing time.

If you were assigned a $200 daily value for your pain and suffering, and you’re expected to recover in 365 days, the per diem method would result in $73,000 in non-economic damages. You would also receive your economic damages.

Which Method Will Be Used for Your Injuries?

The method used to calculate your damages typically varies depending on the facts of your case, negotiations with insurance companies, and whether you settle out of court or go to trial. Because the calculations are subjective — and often complex — working with a skilled and knowledgeable personal injury attorney is the key to seeking fair compensation.

How Long Do You Have to File a Personal Injury Claim in Alabama?

Under Alabama law, you typically have two years from the injury date to file a personal injury lawsuit. However, there are exceptions, including the following:

• Discovering injuries after the accident — Some injuries don’t immediately show symptoms. In these cases, the two-year period begins when you discover your injuries.
• Child victims — Because minors can’t file lawsuits on their own, the two-year period doesn’t begin until they’re 18. However, if you’re a parent recovering damages for lost wages and other expenses, you’ll have two years from the accident date.
• Defective products — If a defective product caused your injury, you only have one year to file your claim.
• Government agencies — Time limits vary depending on the government agency’s rules, but they’re typically much shorter than other personal injury claims. It’s essential to act fast in these situations.

Contact an Alabama Personal Injury Lawyer

Understanding compensatory damages is important. If you suffered injuries due to someone else’s negligence or recklessness, hiring a knowledgeable personal injury attorney will help you effectively pursue compensatory and punitive damages. Gartlan Injury Law delivers honest representation and aggressive trial strategies. Our people-first approach in personal injury cases ensures we’ll keep you informed, understand your needs, and fight for the best outcome possible. We have a proven track record of success and many satisfied clients. Contact us today for a free consultation and learn more about how we can advocate for the compensation you deserve.

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