When you’re injured in an accident, the impact can extend beyond medical bills and lost wages. In personal injury cases, non-economic damages are a big part of the compensation awarded to account for the physical and emotional hardships that come after a serious accident. Understanding what non-economic damages are, how they’re calculated, and the role they play in a New Jersey personal injury claim is important who need full compensation for their suffering.

Continue reading for more information about the concept of non-economic damages, how they differ from economic damages, and how New Jersey law addresses these types of claims.

If you have suffered injury in an accident, please contact our team of personal injury lawyers in New Jersey for a free consultation. Brandon J. Broderick, Attorney at Law can help.

What Are Non-Economic Damages?

Non-economic damages are the non-monetary losses that don’t have a direct financial cost but significantly impact the victim’s life. Unlike economic damages—which cover tangible losses like medical expenses, property damage, and lost income—non-economic damages aim to address intangible losses, such as pain, suffering, and emotional distress.

Examples of non-economic damages include:

• Pain and Suffering: Physical pain, discomfort, and other physical impacts stemming from an injury.
• Emotional Distress: Psychological impacts, such as anxiety, depression, and PTSD.
• Loss of Enjoyment of Life: An inability to participate in activities or hobbies the victim once enjoyed.
• Loss of Consortium: Damages awarded to a spouse or family member for the loss of companionship or relationship due to the injury.

Calculating Non-Economic Damages in New Jersey

Determining a fair monetary value for non-economic damages can be challenging, given the subjective nature of these losses. Unlike medical bills or lost wages, there is no numerical way to measure pain and suffering. To determine a fair number, personal injury attorneys and insurance adjusters often use the following methods:

1. Multiplier Method: In this approach, the total economic damages (such as medical bills and lost income) are multiplied by a number between 1.5 and 5, depending on the severity of the injury. For example, if the economic damages amount to $25,000 and the multiplier used is 3, the non-economic damages would be $75,000.
2. Per Diem Method: Here, a specific dollar amount is assigned to each day from the time of the accident to the expected recovery date. This method is sometimes used for injuries expected to heal over time, though it can be more challenging to apply in cases involving permanent injuries.

Since each case is unique, New Jersey courts allow flexibility in assessing these damages. However, it’s important to remember that non-economic damage awards can vary widely, depending on factors such as the severity of the injury, age of the victim, and long-term effects on their quality of life.

Non-Economic Damages and New Jersey Law

New Jersey, like many states, allows plaintiffs in personal injury cases to pursue non-economic damages. However, certain laws can impact the types of damages that may be awarded in different situations:

• Auto Accidents and the Verbal Threshold: In New Jersey, many auto insurance policies include a “verbal threshold” or “limitation on lawsuit” clause. This threshold restricts an accident victim’s ability to sue for non-economic damages unless they meet specific criteria, such as sustaining permanent injury, disfigurement, or loss of a body part. If the verbal threshold applies, proving a claim for non-economic damages in an auto accident case can be more challenging.
• Medical Malpractice Claims: For cases involving medical malpractice, New Jersey imposes limitations on punitive damages but not on non-economic damages. Plaintiffs can pursue compensation for pain and suffering, emotional distress, and other non-economic losses resulting from medical negligence, although the overall damages awarded can be subject to court oversight.
• Workers’ Compensation Claims: In New Jersey, non-economic damages such as pain and suffering are generally not recoverable through workers’ compensation. Workers injured on the job are limited to compensation for medical expenses, lost wages, and disability benefits. However, if a third party’s negligence contributed to the workplace injury, the worker may pursue a personal injury claim outside the workers' compensation system, where non-economic damages may apply.

The Role of Non-Economic Damages in Catastrophic Injury Cases

For victims with catastrophic injuries—such as traumatic brain injuries, spinal cord injuries, or amputations—non-economic damages can be substantial, as these injuries often cause long-term physical and emotional suffering. In these cases, non-economic damages are vital for providing fair compensation beyond medical bills and lost wages. The lifelong impact on quality of life, relationships, and emotional health justifies the award of higher non-economic damages to reflect the true extent of the harm.

Pursuing a Claim for Non-Economic Damages

Because non-economic damages are highly subjective, working with an experienced attorney is important. An attorney can provide the necessary expertise to assess the full scope of the damages and develop a case that accurately represents the impact of the injury on the victim’s life. Documentation such as medical records, mental health evaluations, and testimonies from friends and family can support the claim for non-economic damages by illustrating how the injury has affected the victim on a personal level.

Additionally, New Jersey has a statute of limitations for filing personal injury claims, generally requiring plaintiffs to file within two years from the date of the injury. Failing to meet this deadline can bar the victim from recovering any compensation, including non-economic damages.

Why Non-Economic Damages Are Important

While no amount of money can fully compensate for the physical and emotional toll of a severe injury, non-economic damages play an important role in personal injury claims by offering victims some level of recognition for their suffering. In many cases, these damages account for a significant portion of a settlement or judgment, underscoring their importance in the pursuit of justice for injured individuals.

Call Brandon J. Broderick For Legal Help

Navigating New Jersey personal injury claims can be challenging. Fortunately, you don't need to do it alone. The experienced personal injury lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.

Contact us now for a free legal review.