How Personal Injury Lawyers Calculate the Value of a Case
When a person suffers an injury due to the negligence or wrongful actions of another party, they may have a valid personal injury claim. If they decide to pursue compensation by filing a lawsuit or insurance claim, a San Luis Obispo personal injury lawyer can help assess the potential value of the case. Calculating the value of a personal injury case is complex and based on many factors.
Economic Damages
A key component in determining the value of a personal injury case is the injured victim’s economic or financial losses. These are tangible, documented losses that can be clearly measured. Economic damages may include:
- Medical expenses – All medical costs related to the injury, including hospital bills, emergency services, surgery, physical therapy, chiropractic care, prescription medications, medical equipment and more. These current and estimated future medical costs are totaled.
- Lost income – The income the injured person has lost to date because they missed work recovering from the injury. Calculations factor in how long the person was out of work at their current pay rate. For serious injuries with lasting effects, estimated future lost wages may be included.
- Loss of future earning capacity – If the injury prevents the victim from ever returning to their job or reduces their ability to work, there are damages for their reduced future earning potential.
- Other financial losses – Costs like damage to their vehicle or property, out-of-pocket costs to secure alternative transportation while their vehicle was repaired, etc can be included.
Noneconomic Damages
Noneconomic damages in a personal injury case are subjective, non-financial losses like emotional distress, pain and suffering. There is no definitive formula for calculating their exact monetary value. Defense lawyers may try to minimize these damages, while the injured victim’s lawyer will advocate for them by emphasizing details like:
- The nature, extent and severity of the injury and any lasting effects
- Type and duration of medical treatment
- Whether the injury caused permanent disability or disfigurement
- Level of physical pain and mental anguish
- Impact on quality of life and ability to enjoy activities
- Emotional factors like humiliation, anxiety, trauma or depression
Lawyers negotiate or the jury decides reasonable compensation for these subjective losses by examining case specifics. Awards typically increase with more severe, catastrophic or fatal injuries.
Comparative Judgment
By analyzing settlements or jury awards given in similar cases, an experienced personal injury lawyer can apply a comparative judgment to estimate the potential value of a specific case based on precedents. Factors compared may include details like:
- Type and circumstances of injury
- Damages and losses
- Injured victim’s age, extent of suffering, level of responsibility
- Insurance coverage and policy limits applicable
- Location, as verdicts vary by state and jurisdiction
This comparative analysis from strong precedents gives a reasonable valuation range to help guide negotiations.
Potential Reduction Factors
There are also some potential deduction factors that may reduce the overall estimated value of a personal injury victim’s potential compensation or settlement. For instance:
- Their own negligence or percentage of fault for causing the accident
- Precondition or subsequent injuries making causation of specific losses more difficult to prove
- Limited insurance coverage lower than damages
- Significant comparative negligence reducing their recovery
- Damage caps placed in some cases by state law
An experienced personal injury lawyer thoroughly investigates liability and damages from all angles to determine a case’s potential value range and settlement prospects. Though arriving at an exact figure is not an exact science, knowledgeable legal counsel follows specific methodology in evaluating what a personal injury claim is worth for purposes of case preparation, settlement negotiation and even trial.
