The damages recoverable through a personal injury case are of two types. They are:
- Economic damages
- Non-Economic damages
Proving economic damages is straightforward. You just have to submit the relevant evidence. But that’s not the case with non-economic damages. Victims cannot produce a bill for these non-economic losses as they are intangible. Some of the more common non-economic losses include:
- Pain and suffering
- Emotional anguish
- Loss of enjoyment of life
- Loss of consortium
These losses cannot be calculated using financial records. Keep in mind that these losses may ruin the victim’s quality of life. That is one of the major reasons why it is necessary to work with an award-winning personal injury law firm.
Before consulting, it is important to know about the multiplier method and how it works in a personal injury case.
What is the Multiplier method?
The multiplier method is a widely used approach to calculate the non-economic damages in personal injury cases. The attorney will multiply the total amount of the victim’s economic losses by a number between 1.5 and 5. If the victim sustains severe injuries, then the lawyer uses a value closer to 5 to estimate non-economic damages.
For instance, if you sustain a traumatic brain injury from an accident, then your lawyer will consider the seriousness of your injury. The lawyer may use a multiplier of 4.5. In this situation, if the total of your economic losses is $12000, you will recover around $54,000 as non-economic losses from the defendant’s insurance company.
In simple terms, the calculation would be $12,000* 4.5 = $54,000.
How Does the Multiplier Method Work?
First of all, a personal injury attorney will calculate your economic damages. Economic damages include
- Medical expenses
- Loss of earning
- Property damage
- Other financial losses related to the accident
Depending on several factors, your lawyer will choose the multiplier to calculate the non-economic damages. Here are the main factors that influence the multiplier:
- The severity of the injury: If you sustain pain and suffering, emotional anguish, and any other long-term impact, a higher multiplier will be used.
- The recovery period: If you need more time to recover from injuries, then a higher multiplier is used.
- The impact on your quality of life: Your diminished quality of life is the main factor in determining the multiplier. The more the condition impacts your life, the higher the multiplier will be.
Based on the factors mentioned above, a multiplier will be used in the calculation of non-economic damages.
If your injuries are minor, then the lawyer will use a multiplier like 1.5 to calculate the non-economic damage.
Without valid proof, your lawyer cannot apply the high multiplier. That’s why it is important to have valid proof. If you want to recover reasonable compensation, then you should have a proper understanding of the multiplier method.
Wrapping Up
The multiplier method is among the two methods used to estimate the value of non-economic damages in a personal injury case. Considering the challenges involved in preparing an accurate estimate of your losses, it is better to consult an experienced personal injury lawyer.
The multiplier method has both benefits and drawbacks. Understanding the process will greatly help in knowing how much you can receive as compensation for your non-economic losses.
In addition to calculating non-economic losses, seeking the help of an experienced personal injury lawyer will provide the required assistance in all aspects of the case. They will be by your side when negotiating with the at-fault party’s insurance company. If negotiations fail, the lawyer will take your case to court, presenting it to the judge and jury and making sure that they understand your plight.
