In personal injury litigation, distinguishing between economic and non-economic damages is essential to evaluating a claim. These categories serve different functions in assessing the impact of an injury on a claimant’s life and finances.
What are economic damages?
Economic damages refer to quantifiable financial losses directly attributable to the injury. These losses include verifiable costs such as medical treatment, rehabilitation, property repair or replacement, and current and projected lost income. Plaintiffs can substantiate these damages with documentation like receipts, wage statements, or medical invoices. Because these losses are measurable, they are generally straightforward to calculate and support with evidence.
What are non-economic damages?
Non-economic damages represent subjective, non-monetary impacts of an injury. These include physical pain, emotional distress, loss of consortium, and diminished enjoyment of life. Unlike economic damages, they do not have a direct financial indicator, making them inherently more difficult to quantify. Courts often consider the nature and extent of the injury, its long-term implications, and testimony to determine appropriate compensation.
Why the distinction matters
Recognizing this distinction helps clarify what types of harm can be addressed in a legal claim. Economic damages reimburse concrete losses, while non-economic damages aim to compensate for more abstract consequences. Texas law imposes statutory limits on non-economic damages in certain contexts, such as medical malpractice cases. Understanding these categories is important when evaluating the full scope of a plaintiff’s damages.
A comprehensive personal injury claim incorporates both types of damages to accurately reflect the total harm suffered. While economic damages establish the financial burden, non-economic damages account for the intangible effects on daily living. Together, they provide a complete picture of how the injury altered the claimant’s life.
