Economic vs. Non-Economic Damages Explained in Oklahoma

If you were injured in an accident in Oklahoma, you may be facing medical expenses, lost income from being off work, and other significant and stressful financial losses. If someone else was at fault for the accident, you may be entitled to compensation in the form of economic and non-economic damages.

Understanding how to calculate economic and non-economic damages is crucial to recovering the amount of money you need after an accident. The good news is you do not have to do it alone. A lawyer from Abel Law Firm will fully calculate all your losses to make sure we pursue the total compensation you are entitled to. We also offer free case reviews and work on a contingency fee basis so you can work with an Oklahoma personal injury lawyer without assuming any financial risk.

What Is the Difference Between Economic and Non-Economic Damages?

In personal injury claims, compensatory damages are typically broken down into two categories: economic and non-economic damages.

The distinction between economic vs. non-economic damages is that one compensates you for monetary losses, and the other for non-monetary losses. Economic damages compensate victims for specific and direct financial losses arising from injuries sustained in an accident. These losses are relatively easy to quantify because they are tangible and can be quickly calculated based on actual costs. Examples of economic losses for which you could recover compensation include:

• Medical expenses
• Lost wages
• Loss of future earning capacity
• Funeral or burial expenses
• Property damage

Non-economic damages compensate you for those losses that don’t have clear dollar values attached. These losses may include:

• Pain and suffering (past and future)
• Physical disfigurement
• Mental anguish and distress
• Loss of consortium, companionship, care, protection, guidance, counsel, or assistance
• Other intangible losses related to the unique facts and circumstances of the case

How Do You Calculate Economic Damages?

Economic damages are more straightforward to calculate than non-economic damages because a bill or invoice exists to demonstrate the specific cost to the injured party. If the accident victim misses work, their pay stubs, income statements, and other financial records will show how much income they lost due to the accident based on their expected wages.

An experienced personal injury attorney will gather all the bills and invoices for paid or incurred expenses and possible pain and suffering damages. They will also request estimates related to any property damage and the necessary personnel records, including paystubs or W-2s, to demonstrate the financial losses related to the accident. With this documentation in hand, your attorney can simply add together your medical expenses, prescription costs, physical therapy bills, and other known costs and calculate your lost income.

How Do You Calculate Non-Economic Damages?

Unlike economic damages, non-economic damages are more challenging to calculate because they are not based on direct financial losses. The methods for calculating non-economic damages include the multiplier and per diem methods:

• The Multiplier Method – This method entails multiplying the total amount of economic losses by a specific number, usually between 1.5 and 5. The multiplier is based on certain factors, such as the severity of your injuries, the accident’s impact on your everyday life, and the length of your recovery. For example, if you have $50,000 in economic losses and a multiplier of 3, your attorney will seek non-economic damages of $150,000.
• The Per Diem Method – Under the per diem method, your attorney will determine a fair daily rate of living with your injuries and then multiply that rate by the number of days you spent recovering from the accident and your average life expectancy.

What Are Punitive Damages?

Punitive damages, also known as exemplary damages, are intended to punish the defendant for specific wrongful conduct. Namely, their behavior must be willful and reckless or intentional and with malice. A punitive damages award in a personal injury lawsuit does not compensate the accident victim for their losses. Instead, it is intended to deter the defendant (and others) from engaging in similar conduct.

Are Punitive Damages Awarded in Oklahoma?

Oklahoma law dictates when courts may award punitive damages and in what amount. A jury may order punitive damages to punish a defendant and to make them an example. The jury can consider the following factors when determining whether a punitive damages award is appropriate:

• The seriousness of the hazard to the public related to the defendant’s misconduct
• The profitability of the defendant’s misconduct
• The duration of the misconduct and whether the defendant concealed any of it
• The degree of the defendant’s awareness of the hazard and its excessiveness
• The defendant’s attitude and conduct upon discovery of the misconduct or hazard
• If the defendant is a corporation or similar entity, the number and level of employees involved in causing or concealing the misconduct
• The defendant’s financial condition

If the jury decides to award punitive damages, Oklahoma law caps the amount. There are three categories of punitive damages in a personal injury claim. For example, under Category I, if the defendant is guilty of reckless disregard for the rights of others or an insurer has recklessly disregarded its duty, the jury may award punitive damages in an amount not to exceed $100,000 or the amount of the actual damages awarded, whichever is greater.

The potential punitive damages award significantly increases under Categories II and III, where intentional conduct and malice are present. In these cases, a jury may award $500,000 or twice the amount of actual damages awarded, whichever is greater.

Contact Abel Law Firm Today

Have you suffered injuries in an accident in Oklahoma and need legal help? Call Abel Law Firm today. We have the skills and experience to handle even the most complex injury cases. We offer our clients the personalized legal services they need after a car accident. With our free case reviews, speak with one of our experienced Oklahoma personal injury attorneys for a confidential meeting. Contact us online or call us today at (405) 239-7046 to get started with your personal injury case. We can help you get the best possible outcome for your case.

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