When someone suffers an injury due to another person’s negligence, they can seek financial compensation through a personal injury claim. Courts categorize damages into two main types: economic and non-economic. Understanding the differences between them helps individuals pursue a fair settlement.
What are economic damages?
Economic damages include tangible financial losses that result from an injury. These damages have measurable values, supported by bills, receipts, and financial records. Medical expenses cover hospital stays, surgeries, medications, and rehabilitation. Lost wages occur when an injury prevents someone from working, while loss of future earnings affects long-term employment prospects. Property damage, such as vehicle repairs after a car accident, also falls under economic damages.
Since economic damages rely on documented financial losses, calculating them remains straightforward. Courts and insurance companies assess evidence to determine the total amount owed.
What are non-economic damages?
Non-economic damages compensate for losses that lack direct financial value but still affect a person’s life. These damages address emotional, psychological, and physical suffering. Pain and suffering arise from physical injuries, while emotional distress includes anxiety or depression. Long-term disabilities can lead to a loss of enjoyment of life. Injuries that strain relationships may also result in loss of companionship.
Unlike economic damages, assigning a value to non-economic damages presents challenges. Courts rely on formulas, expert testimony, and past cases to determine fair compensation.
How courts determine compensation
Several factors influence non-economic damage awards in Wyoming, including the severity of the injury, the long-term prognosis, and the impact on daily life. Wyoming law does not impose statutory limits on non-economic damages in most personal injury cases, except in medical malpractice claims, where caps apply under certain circumstances.
Both economic and non-economic damages play essential roles in personal injury cases. Economic damages restore financial stability, while non-economic damages acknowledge the emotional and personal toll of an injury. Understanding the differences helps ensure fair consideration of all losses in a claim.
