Economic and Non-ecnomic damages

Damages caps vary by state, and you may have a case that could be filed in more than one state. Therefore, it is good that you are looking into questions like this so you will be better equipped to ask questions of the attorneys you interview. Economic damages are typically those that can be quantified, such as medical bills and lost earnings. Non-economic damages are typically damages that are more difficult to quantify, such as pain and suffering, mental anguish, and impairment. Many states, including Texas, have caps on certain elements of damages. Texas currently caps non-economic damages in medical malpractice cases. Texas also caps punitive damages. As you interview lawyers, ask what your choices of jurisdictions will be, and how the law of damages caps varies from jurisdiction to jurisdiction.

Maryland law establishes a "cap," or limit, on the amount an injury victim can collect for non-economic damages, sometimes referred to as "non-pecuniary" damages or damages for "pain and suffering." That "cap" has no direct relation to what an insurance company may be obligated, under a policy of insurance, to pay a victim on behalf of its insured. For example, If an insured has an insurance policy liability policy limit of $250K, the most the insurance company must pay on behalf of its insured, pursuant to its contract of insurance - and whether the injured party's damages are economic or non-pecuniary - is 250K, the limits of its liability policy. The insured would be personally liable to pay any excess award above and beyond 250K, regardless of how the excess amount is characterized. There are separate caps in Maryland for medical malpractice awards and non medical malpractice awards. For example, the Maryland cap for a medical malpractice in 2012 is 710K for an individual victim. There is no "cap" on a damages awarded in any type of personal injury/medical malpractice claim for "economic" damages. For example, in cases involving significant birth injury due to negligence, the projected "economic" costs of raising a severely disabled child can reach in the several million dollars and, if awarded, those damages are not affected by a statutory "cap" in Maryland. You would be best advised to consult an attorney to discuss your case. Absent catastrophic injuries that result in pain, suffering, inconvenience, interruption of lifestyle and other potential elements of non economic damages, the applicable "cap" on such damages may not even come into play and will not warrant genuine concern. More likely, inquiry will be directed to the extent of your injuries and a determination of whether the liability policy limits applicable to your claim are sufficient and whether there are secondary policies of insurance or other sources of recovery worth pursuing to ensure you are adequately compensated for your injuries.

Just to add to the other answers, keep in mind that the law might have a cap on damages, but if the insurance policy is less than the cap, they would not have to pay the cap, but would only have to pay the limits of the policy. For example, suppose the law has a cap on non-economic damages of $250,000 but the insurance policy limits are $100,000 the insurance company would only have to pay $100,000. Also, a cap is a maximum. If the value of your case is less than the cap they would not pay the cap. So in other words admitting to liability doesn't automatically commit an insurance company to paying the cap. Liability and damages are two distinct issues. If you are concerned about caps, you definitely need to talk to a local lawyer.

A good question! The cap applies to limit the maximum that can be awarded after a court action. But you must still put on proof of your damages, whether they are $1 or $250,000. And even if an insurance company admits liability, it may push the matter to trial on the issue of your entitlement to any damages. Bring your case to a law office, and counsel will evaluate the claim.

I dream of the land where insurance companies always pay the limit of the damage cap in every personal injury case! If you find such a land, and the damage cap is high, you must let me know! Alas, personal injury cases are settled in part on what the case is actually worth, in part on what the juries in the particular jurisdiction where the accident occurred are awarding, in part on what certain insurance funded computer programs spit out for the value of a case (determined by the best possible settlement obtained in favor of the insurer by the insurer's best insurance adjuster nationwide on securing the lowest number, less 20%--a program called Colossus by Allstate), in part on how the accident occurred, in part on the plaintiff (their age, employment and character), in part on the experience and success of the plaintiff's lawyer, and in part on the experience and character of the insurance adjuster negotiating a claim. If suit is filed, then the county, state, jury pool, judge, defense counsel, likability of the plaintiff and defendant, and expert witnesses (e.g., treating physicians and insurer paid "Independent medical exam physicians") all play a part. I would rather negotiate a settlement in an accident that occurred in the District of Columbia, Prince George's County or Baltimore City, rather than in Montgomery County or some of the more rural counties. It makes a difference. Even insurance companies are different. Don't even get me started on State Farm and Allstate. Geico, which years ago was reasonable, is now on my hit list. I file suit more often against those companies' insured drivers than any others. Let's just say they have a very high threshold for other people's pain. And don't get me started on WMATA. Now, if you're injured on an international airline flight, or by a driver test-driving a car from a car dealership, then magic is in the air. Their insurers seldom see claims, and they pay. But to answer your question more directly, no insurer is required to pay the cap, unless a jury awards that amount. And trust me, no insurer will pay that amount before rolling the dice before a jury to see if they don't have to. What have they got to lose? Same thing with policy limits. There are few auto policy liability limits which are as high as the non-economic damage cap. No insurer is going to pay their limits in any case where there's a reasonable chance they might pay less. They'd want to try it first. An experienced lawyer will know these things.