Understanding the damages that may be awarded is crucial when it comes to personal injury lawsuits. Compensatory damages, punitive damages, and structured settlements are three primary categories of damages that can be sought in these cases.
Let's delve into each of these types to better understand how they function in legal compensation.
Compensatory Damages
Compensatory damages, as their name implies, are intended to reimburse the injured party for the losses incurred due to the injury. These damages aim to restore the individual to a pre-injury state, to the extent feasible through financial restitution.
There are two subcategories of compensatory damages:
1. Economic Damages
Economic damages refer to measurable financial losses suffered by the injured party, encompassing expenses like medical bills, lost wages, property damage, and other injury-related out-of-pocket costs.
In a personal injury lawsuit, economic damages are crucial in ensuring that the injured party is not financially burdened by someone else's negligence.
2. Non-Economic Damages
Non-economic damages, on the other hand, are more subjective and cover intangible losses that are not easily quantified. Pain and suffering, emotional distress, loss of consortium, and loss of enjoyment of life are common examples of non-economic damages.
While placing a monetary value on these losses can be challenging, non-economic damages are essential for addressing an injury's emotional and psychological impact.
Punitive Damages
In contrast to compensatory damages, punitive damages carry a distinct objective. They aim to penalize the responsible party for their severe misconduct and deter them and others from repeating such actions. Punitive damages are commonly granted in cases involving the defendant's highly reckless, malicious, or deliberate behavior.
It's essential to note that not all personal injury cases warrant punitive damages. Courts reserve these damages for cases where the defendant's conduct was especially reprehensible and compensatory damages alone may not address the harm caused.
Structured Settlements
Structured settlements offer an alternative to lump-sum payments in personal injury cases. Instead of receiving the entire settlement amount at once, the injured party receives periodic payments over a specified period.
Structured settlements offer a source of long-term financial stability, ensuring the injured party receives consistent payments to address enduring medical costs and other essential expenses.
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