When researching personal injury lawsuits or beginning a case, few things are more important than compensation or the award of damages. That’s not to say money is the most important thing in life, but when it comes to compensating someone for their injuries and hardships, there are very few other ways to make a victim whole. Some clients who come into our office are confused about specific terms and what they refer to in a legal context, and today; we want to clear the air and give you the confidence to tackle your personal injury case head-on.
Compensation or Damages? Which is Which?
You will often hear two terms during a personal injury case and initial discussion: compensation and damages. Compensation refers to the overall recovery a plaintiff seeks after suffering an injury. Compensation aims to restore the injured party to their position before the incident as closely as possible. Compensation won’t reverse the injury if an accident results in a permanent, life-changing injury. But it can go a long way to help the injured party begin a new life on solid footing.
Damages, however, are the specific monetary awards a court grants or a settlement offers to cover the plaintiff’s losses. Damages are the mechanism through which compensation is delivered, broken down into different categories depending on the nature of the harm and how it impacts the victim.
Damages can be compensatory in nature, meaning they have the same goal as “compensation,” but they don’t have to be. In certain situations, courts or juries may award damages to punish a bad actor and provide additional funds to a victim. That is the main difference to remember, as these punitive, non-compensatory damages are always unique aspects of a case that are hard to predict. Florida law also limits punitive damages to 3x the compensation, or $500,000, whichever is highest.
The Three Main Types of Damages
- Economic Damages: Economic damages are what you likely think of when you think of compensation as a whole. They are the main form of compensation for financial losses that can be directly calculated. These damages are often the easiest to quantify, as they cover measurable costs; for instance, if your injury required surgery or ongoing medical care, the bills for these services would fall under economic damages. Similarly, if your injury caused you to miss work, you would be compensated for the income you lost during recovery. The goal is to cover all out-of-pocket expenses so someone else’s negligence does not financially burden you.
- Non-Economic Damages: Non-economic or general damages address the intangible losses from an injury. These can be more difficult to calculate since they cover more abstract topics, such as pain, suffering, and distress—feelings and situations without an obvious price tag. Economic damages have a direct dollar amount, such as detailed medical bills, but non-economic damages often leave room for negotiation in settlements, meaning your choice of attorney plays a massive role in how well you are compensated through non-economic damages.
- Punitive Damages: Punitive damages are less common and are distinct from compensation, meaning they are not calculated or awarded based on the victim’s injuries or hardships. The entire purpose of punitive damages is to punish negligent or liable parties for reckless or malicious behavior, with the anticipated effect of discouraging future bad behavior. Punitive damages are an option if a defendant’s actions were more than just negligent, such as extreme carelessness or intentional harm. While punitive damages can significantly increase the amount awarded in a personal injury case, they are reserved for circumstances where the court deems the defendant’s conduct especially harmful. And remember, these damages are not compensatory and are not factored into calculations related to “making a victim whole.”
At the end of the day, these terms matter when lawyers and insurance companies negotiate, but you don’t need to understand every detail. Attorneys negotiating on your behalf will always keep you informed of goings-on and explain terms in a simple, straightforward way. At Probinsky & Cole, our team prioritizes making the personal injury lawsuit process as easy and stress-free as possible to ensure our clients have a good experience. Contact us today to schedule a consultation and talk about your Florida injury.
