Why is it that some personal injury cases are far more valuable than others? What is the main factor that increases the value of a case?
Thanks to US tv shows most people think it’s as simple as juries coming in at the end of the trial awarding huge sums in damages. Or in other words: the more traumatic or painful the injury, the higher the compensation.
But in the calculus of personal injury litigation, losing a finger or two can be worth less than a moderately painful back.
There are two types of losses you can be compensated for in a personal injury claim: non-economic loss and economic loss.
Non-economic loss is also known as pain and suffering. You get compensated for your pain. It used to be the case that judges had almost unfettered discretion in determining the compensation amount for pain and suffering.
But these days, how much you get for pain is largely dictated by legislation. For example, the Civil Liability Regulation states that loss of a finger gets you up to $41,450, depending on which finger it is. (Bear in mind, the judge still has some discretion to increase this amount under certain circumstances).
By contrast, let’s look at compensation for economic loss. This is to cover your financial loss. Importantly, it’s not just loss that you have already incurred. It also includes loss that may arise in the future.
A skilled tradie on $2,000 per week who suffers a back injury may not be able to return to their usual occupation. Even if they find alternative employment, their wages in the new role may be substantially less than prior to the injury. For example, imagine a 35-year-old who loses $1,000 per week for the rest of their working life (i.e. until 67). All of that loss, plus the associated loss of superannuation contributions, can be recovered.
Of course, this is a simplified example and real-life claims tend to have complicating factors, such as pre-existing injuries, disputes about who was at fault and so on. And in cases involving multiple injuries, or catastrophic injuries, the compensation for pain and suffering can be a lot higher. But the point is that in many personal injury claims, the biggest chunk of the compensation payout is for economic loss, rather than pain and suffering.
