Key Takeaways:

  • Negligence requires proof of duty, breach, causation, and resulting harm for a successful claim.
  • Types of damages include nominal, compensatory (both tangible and intangible), loss of consortium, and punitive damages.
  • How to calculate damages for negligence involves assessing actual costs, future losses, and pain and suffering, with methods like multiplier formulas for general damages.
  • Economic vs. non-economic damages distinguish between measurable financial losses and intangible suffering.
  • Comparative and contributory negligence laws may impact a plaintiff’s compensation depending on jurisdiction.
  • Statute of limitations varies by state, limiting the time frame for filing a negligence claim.
  • Expert testimony is often used to quantify damages, especially for long-term medical expenses or loss of future earnings.

Damages for negligence constitutes court-ordered compensation for personal injury, property damage, and associated expenses caused by the negligence of another person.

What Is Negligence?

When a person acts carelessly and another person, or his or her property, is injured or damaged by the court, this is legally considered negligence. As a result, the person who was negligent will be legally required to compensate the injured party for damages. This concept usually arises in cases involving car accidents and other types of personal injury.

Four elements must be proven by the plaintiff for negligence to be established:

  • The circumstances create a legal duty between the defendant and the plaintiff. Sometimes, this is created by the nature of the relationship, such as doctor/patient. Other times, it hinges on the expected conduct of a person in public, such as someone driving an automobile.
  • This duty was breached when the defendant acted or did not act in a specific way. The court considers whether a "reasonably prudent person" would take the same actions as the defendant; if not, he or she was likely negligent.
  • The action or failure to act on the part of the defendant caused the injury or damage in question. For example, if you were texting and driving and hit a parked car, you would be found negligent. If nothing happened despite these irresponsible actions, legal negligence does not exist. In addition, if the defendant may have reasonably expected his or her actions to potentially cause an injury, this could constitute causation. Causation is not likely when an unexpected natural occurrence such as weather played a role in the injury.
  • Injury or harm resulted.

Types of Damages

  • Nominal damages are awarded when a plaintiff was not injured but was legally wronged. This situation is rare because negligence cases usually require proof of injury.
  • Compensatory damages are paid for actual injuries suffered, designed to return the plaintiff to the same situation he or she was in before the negligence in question occurred. Sometimes compensatory damages are categorized by intangible and tangible losses.
    • Tangible losses are those that are simply calculated. For example, tangible damages for personal injury include all medical expenses associated with the injury (including those projected for the future) as well as lost wages both current and projected. Property damage is calculated either by the difference of the property's market value before and after the incident in question, or by the actual value of the property. The category also covers the loss of use of the property while it is being repaired or replaced (the cost of a rental car, for example).
    • Intangible losses are those without a specific cost attached, such as pain and suffering, emotional distress, mental anguish, and other mental health-related effects that damage the plaintiff's quality of life. The jury is typically responsible for establishing the value of intangible losses as guidelines for these calculations do not exist.
  • Loss of consortium compensates the spouse of an injured person for the loss of companionship and services they suffered because of the injury. This is based on the jury's observations and not calculated based on the value of hiring a babysitter, house cleaner, or lawn mower.
  • Punitive damages are awarded if the defendant's actions are proved to be reckless, wanton, or purposeful, meaning the person acted in complete disregard of others' safety. They are not designed to compensate the plaintiff but to discourage others from committing these types of acts. The amount is dictated by the legal doctrine from which the claim arose. Some states use a guideline for punitive damages, such as three times the actual recovery amount. In other states, the jury is left to decide based on factors such as culpability level, the severity of harm, the extent to which the plaintiff shared responsibility, past conduct by the defendant, whether he or she profited from the conduct in question, and punitive damages awarded in similar cases.

Understanding Economic vs. Non-Economic Damages

Damages in negligence cases are broadly classified into economic and non-economic damages:

  • Economic Damages: These include tangible financial losses such as:
    • Medical expenses (current and future costs)
    • Lost wages and reduced earning capacity
    • Property damage and repair costs
    • Rehabilitation and therapy costs
  • Non-Economic Damages: These refer to compensation for intangible losses, such as:
    • Pain and suffering
    • Emotional distress
    • Loss of enjoyment of life
    • Disfigurement or disability

Courts often use different methodologies to assign value to non-economic damages, including the multiplier method, which multiplies actual financial losses by a factor typically ranging from 1.5 to 5.

Calculating Damages

In addition to actual costs, factors the jury may account for when calculating damages can include permanent injury, disfigurement, shortened life expectancy, psychological trauma, depression, sexual dysfunction, anxiety and apprehension, and loss of enjoyment of life.

How to Calculate Damages for Negligence

Determining damages in a negligence claim involves multiple steps to ensure proper compensation. Some key factors considered include:

  1. Calculating Economic Damages:
    • Medical Costs: Includes emergency care, surgeries, medications, and long-term rehabilitation.
    • Lost Income: Based on past earnings and projected future wages, considering career trajectory.
    • Property Damage: Assessed by repair costs or fair market value of lost/damaged property.
  2. Estimating Non-Economic Damages:
    • Courts may apply the multiplier method, where total economic damages are multiplied by a factor based on injury severity.
    • The per diem method assigns a daily value to pain and suffering, calculated over the anticipated recovery period.
  3. Consideration of Comparative and Contributory Negligence:
    • In states with comparative negligence, plaintiffs may still recover damages even if partially at fault, but compensation is reduced by their fault percentage.
    • In contributory negligence states, if a plaintiff is found even 1% responsible, they may be barred from any recovery.
  4. Using Expert Testimony:
    • Forensic economists can project long-term economic losses.
    • Medical experts provide insight into ongoing healthcare costs.
    • Vocational specialists assess how injuries impact job prospects.

Understanding Statute of Limitations for Negligence Claims

Each state has a statute of limitations that dictates how long a victim has to file a negligence claim. These timeframes typically range from one to six years, depending on the jurisdiction.

  • Exceptions: Some states allow extensions under the discovery rule, meaning the clock starts when the injury is discovered rather than when it occurred.
  • Minors and incapacitated individuals: Certain states allow longer filing windows for these individuals.

Failing to file within the applicable statute of limitations can result in a loss of the right to seek compensation.

Frequently Asked Questions:

  1. How do you calculate damages for negligence?
    • Economic damages are based on tangible costs like medical expenses and lost wages, while non-economic damages may be calculated using the multiplier or per diem method.
  2. What is the difference between compensatory and punitive damages?
    • Compensatory damages cover actual losses, while punitive damages are meant to punish the defendant for egregious misconduct.
  3. Can you sue for negligence if there are no physical injuries?
    • Yes, in some cases, damages for emotional distress or financial loss may be awarded even if no physical injury occurred.
  4. How do comparative negligence laws impact compensation?
    • States with comparative negligence reduce damages based on the plaintiff's fault percentage, whereas contributory negligence may bar recovery entirely.
  5. What role do expert witnesses play in calculating damages?
    • Experts, such as forensic economists and medical professionals, help establish the extent of financial losses and future medical expenses.

If you need help with damages for negligence, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.