Understanding Economic and Non-Economic Damages After a Serious Injury

A serious injury can cause long-term physical, emotional, and financial challenges for a patient and their family. They may need to undergo additional surgeries or procedures, as well as physical and occupational therapy, and other medical treatments. They may need to learn new ways to cope with physical limitations and psychological trauma. Families often face an uphill battle to manage the stress and cost of rebuilding their lives.

Injury victims may be able to pursue a personal injury or medical malpractice lawsuit to recover compensation for their losses. This type of legal proceeding can allow them to recover economic damages to cover their financial losses and non-economic damages to compensate them for the other ways the injury impacted their lives. Attorneys work with expert witnesses to ensure a settlement or verdict reflects the full scope of these damages.

Economic Damages: Current and Future Financial Costs

Economic damages are financial losses related to an injury. These are the measurable, documentable costs that come with medical care, disability, and changes to daily life. Experienced personal injury attorneys rely on many types of experts to prepare a comprehensive damages report.

A life care planner is a certified professional who creates a comprehensive plan for individuals with long-term disabilities or chronic illnesses, including future medical, rehabilitative, and support needs. This plan outlines a detailed, cost-estimated forecast of care for the individual’s lifetime, providing a projection of the total lifetime cost associated with the injury.

Calculating economic damages begins with compiling a patient’s medical expenses. This includes costs that they have already incurred and the anticipated cost of future treatment, such as:

• Ambulance and emergency transportation.
• Hospitalization, surgery, medication, and other inpatient care.
• Medical equipment and devices.
• Follow-up care and rehabilitation.
• Physical, occupational, or speech therapy.
• Home health care and assistance.
• Anticipated future medical procedures.

When an injury causes short- or long-term developmental or functional disabilities, the long-term costs can be significant. These can include:

• Professional caregivers or skilled nursing services.
• Case management and coordination of multiple healthcare providers.
• In-home adaptive equipment and technology to maintain independence.

Medical experts can project these costs over a patient’s lifetime, adjusting for inflation and including expected increases in medical costs in their overall valuation.

Injuries that limit mobility or physical ability can make it impossible for a person to live in their home or use their current transportation options. They may be able to recover costs related to improving their home or vehicle, including:

• Finding or building accessible housing.
• Home modifications such as ramps, widened doorways, or accessible bathrooms.
• Purchasing or modifying a vehicle for wheelchair access or adaptive controls.
• Transportation for medical care or community access.

Rehabilitation and accessibility experts can assess the value of these damages and testify to their necessity and reasonableness.

Survivors of serious injuries often miss significant time from work. Even after they recover, they may no longer be able to perform their prior job. A full damages calculation may include:

• Lost wages during recovery.
• Loss of future earning capacity and economic opportunity.
• Lost employment benefits, such as healthcare coverage or retirement contributions.

In addition to limiting a person’s ability to work outside the home, serious injuries often prevent individuals from managing a household or caring for their families. They may be able to recover the value of these services, such as:

• Childcare, elder care, or respite services.
• Housekeeping and household maintenance.
• Help with meal preparation, laundry, or errands.

An economic expert can accurately value what the injured person would have earned over time if the injury had not occurred and the additional costs they will incur to maintain a stable home life.

Non-Economic Damages: The Human Impact

Non-economic damages compensate a victim for the psychological impact of a serious injury. They may include compensation for:

• Physical pain and suffering caused by the injury or its treatment.
• Emotional trauma, such as anxiety, depression, insomnia, or PTSD.
• Loss of enjoyment of life (the inability to pursue hobbies, relationships, or independence).
• Loss of consortium or companionship (for spouses or family members affected by the injury).

There is no limit to the amount of economic damages you can recover in a Michigan personal injury or medical malpractice claim. There is also no limit on the amount of non-economic damages a plaintiff can recover in a personal injury claim that doesn’t involve medical malpractice.

However, Michigan law limits the amount of non-economic damages that a plaintiff can recover in a medical malpractice case. The maximum amounts, or “caps,” are set by the Michigan Department of Treasury and change each year based on inflation. Which cap applies to a particular case depends on the severity of the injury.

Proving the Value of Your Claim

Proving and documenting damages in a Michigan injury case requires careful coordination between legal, medical, and financial professionals. An experienced personal injury or medical malpractice attorney can identify all sources of recovery and ensure that expert witnesses support the claim with credible, evidence-based projections. Expert witnesses play a crucial role in developing a comprehensive valuation that includes all aspects of the financial and emotional costs associated with an injury. If you or a loved one suffered a serious injury, an experienced attorney can help you understand your rights and the full value of your claim. The skilled team at Sommers Schwartz, P.C., understands how an injury changes every part of your life. Contact us today to schedule a free, no-obligation, confidential consultation.