Personal injury cases can be complex, and one area that often requires a thorough understanding is financial damages. In this blog post, we'll define financial damages and explain their significance in personal injury lawsuits. We'll also discuss the different types of financial damages, how a plaintiff can prove financial loss, and the role of a personal injury lawyer in pursuing financial damages.
I. Introduction When someone is injured due to the negligence of another party, they may be entitled to compensation for damages. Financial damages are one type of damages that can be awarded in a personal injury case. These damages differ from other types of damages, such as pain and suffering, which are more difficult to quantify.
Personal injury lawsuits aim to compensate for the various injuries and losses sustained by the plaintiff. These include compensating the plaintiff for the financial costs associated with the injuries and damages. These financial costs are defined as financial damages, which are designed to calculate the losses that a plaintiff has experienced as a direct result of the accident.
II. What are Financial Damages? Financial damages are damages that are awarded to compensate the injured party for their financial losses. These damages are designed to cover expenses that the injured party has incurred or will incur as a result of the injury.
Examples of damages that may be classified as financial damages include lost income, lost pension or retirement benefits, loss of earning capacity, medical expenses, rehabilitation costs, costs of ongoing care, and property damage. These damages are significant because they directly impact the injured party's financial situation.
III. Types of Financial Damages: In a personal injury case, there are different types of financial damages that may be applicable. These can include lost income, lost pension or retirement benefits, loss of earning capacity, medical expenses, rehabilitation costs, costs of ongoing care, and property damage. The courts consider each of these types of damages when assessing compensation for an injured party. In some cases, the amount of compensation awarded for financial damages will exceed other types of damages, such as pain and suffering. This is because financial damages are more easily quantifiable and can have a significant impact on the injured party's future financial situation.
A. Lost Income: Lost income refers to the earnings that the plaintiff loses as a result of an accident. If the plaintiff is unable to work due to the accident, their claimed compensation may include lost wages. Lost wages include both past and future earnings that the plaintiff would have earned if the accident had not occurred.
To prove lost income in a personal injury lawsuit, you will need to provide documentation and evidence of your earnings before and after the injury. Some evidence that may help include:
Employment records: such as pay stubs, W-2 forms, and tax returns from the past few years. These records should show a consistent income that was lost due to the injury.
Medical records: with documentation from your doctor or specialist that verifies the extent of your injuries, treatment required, and the period of time that you were unable to work.
Company records: If you are self-employed, your company's financial statements and invoices can help demonstrate your losses.
Expert witnesses: You can consult with a vocational expert witness who can provide testimony on your behalf explaining the impact of your injuries on your ability to earn an income.
It's essential to keep accurate records of your lost income because this can have a significant impact on the financial compensation calculations and overall settlement negotiation process. A personal injury lawyer can help you gather the necessary documentation and financial records needed to prove your lost income, and thus help you receive the compensation you deserve.
B. Loss of Pension or Retirement Benefits: In addition to lost wages, a plaintiff may also experience losses in pension or retirement benefits as a result of the accident. It may also include lost employee benefits, including health insurance, sick pay, and disability benefits.
Proving lost retirement or pension benefits in a personal injury lawsuit requires the collection and provision of detailed financial records. Here are some relevant pieces of information that you will need:
Pension/Retirement Plan Statements: The first thing you will need to prove lost pension or retirement benefits is to provide the financial records that document the value of your retirement or pension account before the injury. These records should show the balance of the account, contributions made, and benefits earned before the injury.
Employment Records: Provide any contributions made by your employer on your behalf and the benefits you were expected to receive.
Medical Records: Any medical record or doctor's reports that show how your injury is preventing you from earning income or how the injury has resulted in a permanent disability that will prevent you from earning the retirement benefits you would have been entitled to.
Expert Witnesses: It may be helpful to hire an economist or a forensic accountant, who can quantify the losses you've suffered to determine the present value of your lost retirement or pension benefits.
It can be laborious to prove lost retirement or pension benefits in a personal injury lawsuit, but a qualified personal injury lawyer can assist you in gathering the required financial documents, financial statements, and other evidence to make your case to the court.
C. Loss of Earning Capacity: Loss of earning capacity refers to the potential income and earning capacity a plaintiff may lose over time due to their injuries. The legal system recognizes that several types of disabilities and injuries can affect an individual's future ability to earn income. A plaintiff may be awarded damages for loss of earning capacity if it can be demonstrated that they are unable to perform work roles that they could have performed had it not been for the accident.
Proving loss of earning capacity in a personal injury lawsuit can be a complicated process, and it requires the gathering and presenting of several types of evidence to the court. Here are some things that may be used to prove the loss of earning capacity:
Expert Testimony: Expert witnesses, such as economists or vocational experts can provide vital evidence to the court to establish the loss of earning capacity. These experts can analyze your current and future job prospects, potential earnings, and provide evidence on how your injury has impacted your ability to earn money.
Medical Records: Medical records that can substantiate the exact extent of your injuries and how they will impact your ability to earn a living. Examining doctors can provide reports on the number of hours you can work each day, the amount of weight you can lift, or how long you can sit, stand or walk without experiencing pain.
Employment Records: These records will provide information on the nature of your job, salary, and benefits. Employment records may reveal any training, promotions, or upward career mobility that you were in line to receive before the injury.
Salary or Wage History: Providing a detailed salary or wage history to the court may help in showing your earning potential and what you were capable of earning before the injury. This salary history should include employment history, paychecks, and any professional accolades you have achieved.
Life Expectancy Data: Providing evidence-based upon tables on life-expectancy data, which provides information on how long one is expected to live, organized by age and gender. This data is used to help the court understand the number of years you can continue working, and then the calculation of lost wages.
A personal injury lawyer can help you gather the required evidence to demonstrate the loss of your earning capacity and the impact of the injury on your ability to earn money as well as helping you receive the proper compensation you deserve.
IV. Proving Financial Loss To receive financial damages in a personal injury lawsuit, a plaintiff must prove that they have suffered financial losses as a result of the injury. Different types of evidence can be used to prove these losses, such as employment records, tax returns, medical bills, and testimony from expert witnesses. The plaintiff must provide accurate and comprehensive financial records to support their claim.
Medical Expenses Medical expenses may represent a considerable portion of financial losses for the victim of a personal injury accident. Medical expenses typically include costs for hospitalization, diagnostic tests, prescription drugs, physical therapy, or any other medical procedure necessary to treat the victim's injuries.
Rehabilitation Costs Rehabilitation costs include the financial expenses that a victim may incur for treatment and rehabilitation
V. Working with a Personal Injury Lawyer A personal injury lawyer can help an injured party pursue financial damages in a personal injury lawsuit. They can gather evidence and documentation to help the client prove financial loss, negotiate with insurance companies, and defend their clients' interests in court. Working with a personal injury lawyer can help ensure a fair and just outcome in the case.
VI. Conclusion In conclusion, financial damages are an important aspect of personal injury cases. They serve to compensate the injured party for their financial losses and impact on their future financial situation. It's important to work with a personal injury lawyer to ensure that adequate financial damages are awarded and accurately reflect the plaintiff's losses. If you have questions or need assistance with a personal injury case, contact a qualified personal injury lawyer today.
Relevant articles
American Bar Association: "Damages in Personal Injury Cases": https://www.americanbar.org/groups/public_education/resources/law_issues_for_consumers/personalinjury/
The New York State Trial Lawyers Association: "Understanding Damages in a Personal Injury Case": https://www.nystla.org/index.cfm?pg=UnderstandingDamages
Cornell Law School: "Proving Damages in a Personal Injury Lawsuit": https://www.law.cornell.edu/wex/damages_in_personal_injury_cases
