The Difference Between Special Damages and General Damages Explained – Guest Post
“Very often, clients come for help to get insurance payouts, armed with a pile of documents. They hope to receive a fixed amount of compensation, but they do not realize that there are several types of damages, and each is calculated differently”, said Craig Rosenbaum, Founder of Rosenbaum & Rosenbaum.
Indeed, claimants frequently focus on compensation for pain and suffering, overlooking the importance of special damages. Yet these quantifiable losses can make up a significant portion of the final payout in some cases.
This article aims to help readers understand the difference between special damages and general damages, as well as the characteristics of each.
Understanding Special Damages
Special damages are losses that a person can measure and document. In other words, they are financial or economic losses resulting from an injury or another wrongful act. When reviewing these claims, attorneys at McMinn Law emphasize that the main characteristic of this type of damage is its strict requirement for accuracy and provability. They are specific, such as medical expenses following the accident, lost earnings for a specific period, and the cost of repairing damaged property.
The purpose of special damage is to restore the financial position of the injured party, rather than punish the defendant. To get this compensation, the plaintiff must prove that the defendant’s action directly led to these specific losses. A person should provide medical bills, hospital receipts, a doctor’s medical report, contracts, and lost earnings calculations.
Categories of Special Damages
There are several types of special damages, each with a distinct calculation method. Besides, each category requires its own specific documents because they prove different types of losses.
Loss of Income
The loss of income depends on the income the individual lost as a result of the injury. The court also considers future income losses if the parties can accurately predict them. Pay stubs, tax returns, or an employment contract fully suffice for this assessment.
Medical Expenses
This covers all expenses related to medical treatment. This encompasses hospitalization, surgeries, medications, doctor consultations, and rehabilitation.
Property Damage
Property damage includes all expenses for renovation or replacement of the damaged property. For instance, home restoration or car repairs. Estimates, invoices, or an expert assessment must back this claim.
Out-of-Pocket Expenses
Expenses that the injured party has to pay because of the defendant’s actions. This includes rental housing expenses, doctor visit fees, childcare services, and specialized mobility equipment costs.
Understanding General Damages
General damages compensate for the consequences of harm that lack a precise monetary value. Unlike special damages, they do not involve specific financial losses, and no documents can verify a precise amount of damages.
The defining element of general damages is that they compensate for the decline in a person’s condition or quality of life following the harm. This type of damage may last for a long time and affect everyday life, a person’s physical and emotional well-being, as well as their interactions with the outside world.
People should bear in mind that general damages defy simple mathematical calculation, and the court itself evaluates the severity of the consequences, their duration, the degree of impact on the person’s life, and other circumstances of the case.
That is why general damages are more subjective than special damages. To justify a claim for general damages, the plaintiff must prove the harm itself and its impact on their life. Although these damages lack a precise monetary value, they must represent real harm, and evidence must support them rather than mere assumptions.
Categories of General Damages
Historically, English common law and judicial practice recognize several main types of general damages.
Loss of Enjoyment of Life
Compensation for the reduced ability or lack of desire to live, to enjoy life, and get the most out of it. It means that an injured person does not want to communicate with friends and may even avoid them, may show indifference towards traveling and visiting places of interest, or hobbies that previously fulfilled them.
Emotional Distress
Compensation for the negative psychological consequences of the harm. This includes such negative conditions as fear, anxiety, apathy, depression, and other psychological disorders and emotional distress.
Pain and Suffering
To this type belongs physical suffering that the injured party experiences due to the injury or other harm. They are limited mobility, chronic pain, post-accident or post-surgery pain, and physical discomfort.
Loss of Consortium
Compensation for negative influence on domestic relationships. This manifests in the diminution of care, support, companionship, and closeness that the couple shared before.
Loss of Reputation
Compensation for harm to a person’s reputation, or professional standing. Specifically, this section covers the dissemination of false information, groundless allegations, or other actions capable of negatively affecting how others perceive the individual.
How Courts Quantify Damages in Personal Injury Cases?
In personal injury cases, courts calculate damages by separating measurable and non-measurable losses. For special damages, they total all proven expenses: for example, $3,000 medical bills + $2,000 rehabilitation costs + $5,000 lost wages equal $10,000.
General damages require estimation, not exact proof. Courts often apply a multiplier, for example 10,000 × 2 = 20,000, or use a daily rate, such as $100 per day × 180 recovery days = $18,000. The final compensation combines both parts: 10,000 + 20,000 = 30,000 total damages, or 10,000 + 18,000 = 28,000 depending on the method used.
The Statute of Limitations for Filing a Claim
Generally, you have a three-year window to file a personal injury lawsuit. This period typically begins on the day your incident occurred. However, if you did not immediately recognize the severity of your injury or its link to the accident or fault, the clock may start later, from the moment you gained that awareness.
There are specific circumstances that alter this timeframe: for minors, the three-year countdown does not start until they reach adulthood, although a parent or guardian can initiate a claim on their behalf beforehand. Similarly, for individuals who lack the mental capacity to pursue a claim, the time limit is suspended until their capacity is restored, during which a representative can act on their behalf.
Do I Need a Lawyer to Pursue a Claim?
Hiring a lawyer when bringing a personal injury claim is not a legal requirement, but in real terms it significantly improves the chances of a successful outcome. Pursuing general and special damages involves navigating complex legal procedures, gathering and structuring evidence, and working out the value of compensation with precision.
An experienced lawyer can take control of the entire process: collecting evidence, preparing legal documents, negotiating with the opposing side, and representing the claimant in court. This reduces the risk of procedural mistakes and strengthens the claim for fair compensation.
Conclusion
The topic of compensation, specifically highlighting special and general damages, is tricky. The reason lies in properly submitting all documents and effectively presenting these damages to a court or an insurance company.
People can do it on their own if they know where to start, while others may skip the required deadline, fail to collect necessary evidence, and so on. These claimants require professional legal guidance.
With judicial assistance, they will have a one hundred percent guarantee of obtaining everything they deserve.