What Are “Damages” in a Car Accident Case in Tennessee?

After a car accident, you may be focused on fault—who caused the accident, what went wrong, and what your insurance company is going to say. But damages are an equally important part of this equation. Once you have figured out who is to blame for the accident, you may be able to recover compensation for their negligence. The term “damages” refers to the compensation that you may receive for the losses you’ve suffered as a result of the accident.

Wondering what your options are after a Tennessee car accident? It is time to talk to the team at Rocky McElhaney Law Firm. Call us to schedule a consultation with our team now.

What does the term “damages” mean?

The term “damages” is used in a legal context to describe the money that you are awarded for losses caused by someone else’s negligence. You may receive damages as part of a settlement offered after negotiations or after succeeding in court.

Accident victims often underestimate what their case is worth or believe that they can only recover what they spend directly on medical bills. However, the reality is that you may be entitled to more once you catalog your losses fully.

Understanding how damages work, how insurance companies look at your losses, and how to make your case can put you in a better position to avoid lowball offers and fight for a fair settlement or jury award.

The main types of damages in Tennessee

In Tennessee, there are three types of damages you may be awarded, whether your compensation comes from a settlement or a jury award. We will go into more detail about each type below.

Economic damages—your financial losses

Economic damages include your measurable financial losses. If you can measure exactly how much money something is costing you or what it will cost you, it likely falls into this category. Some of the types of compensation that fit into this category include:

• Medical expenses, both current and future
• Lost wages
• Loss of earning capacity
• Property damage

These types of damages can add up to a significant portion of your compensation. Medical bills are often a big part of a victim’s compensation, and if you suffer a catastrophic injury, you may be looking at millions of dollars in medical expenses down the road. Depending on how long you are out of work (or if you are permanently unable to work), lost wages could also account for a sizable portion of your compensation.

Non-economic damages, your non-monetary losses

Non-economic damages are meant to compensate you for losses that are very real but have no clear or set financial value. Even though these losses are not easily calculated, they are still an important part of your personal injury claim and may warrant compensation. If you are awarded non-economic damages, you may be compensated for:

• Pain and suffering
• Emotional distress
• Disability or disfigurement
• Loss of enjoyment of life
• Loss of consortium

Compared to economic damages, non-economic damages are more challenging to calculate and are much more subjective. While one jury may consider pain and suffering worth $500,000, another jury could look at the same exact case and award $100,000. This is why it is very important to back up and support your losses with as much evidence as possible.

For example, if you want to demonstrate the extent of your pain and suffering, you may want to keep track of your use of pain medication to show how your pain levels fluctuate from day to day. You may also want to take note of activities you loved that you have had to stop or cut back on as a result of pain or disability.

Punitive damages

Punitive damages are different from economic and non-economic damages in one important way—they are not compensatory damages. Yes, the money does get awarded to the victim, but its main purpose is not to compensate the victim. Its main purpose is to punish the liable party for reckless or intentional behavior. Punitive damages also serve to discourage the at-fault party and anyone else aware of the case from engaging in similar behavior in the future.

Because punitive damages are intended to punish someone, you have to have fairly egregious conduct for them to even be considered in Tennessee. A jury will not award punitive damages for regular cases involving negligence. An at-fault party must have engaged in intentional, malicious, fraudulent, or reckless behavior for punitive damages to be awarded.

Does Tennessee cap personal injury damages?

Whether or not there are caps on your compensation depends entirely on the type of compensation you are awarded. In Tennessee, there are no caps on economic damages. However, Tennessee does limit non-economic damages. The usual limit is $750,000 per injury victim, although that cap increases to $1,000,000 for catastrophic injuries. Catastrophic injuries include those resulting in paraplegia or quadriplegia, amputation of two hands or two feet, or third-degree burns covering 40% or more of the body or face. This limit may not apply if the at-fault party acted intentionally, was impaired by drugs or alcohol, or attempted to evade liability by destroying or hiding evidence. However, this only applies in very limited cases that meet strict qualifications.

Punitive damages are also capped in Tennessee. The limit is either $500,000 or two times the total compensatory damages (both economic and non-economic combined). Exceptions to this cap may apply in certain cases involving intentional or egregious conduct, or if a case ends up in federal court.

There is one more exception as well. If your case is against a governmental entity, your total compensation is subject to strict statutory caps under Tennessee law.

Understanding the true value of your case can be challenging, especially when compensation is broken down into so many categories. That is why we recommend discussing your case with a personal injury attorney as soon as possible after an accident.

Injured in a car accident? It is time to talk to Rocky McElhaney Law Firm

Do not wait for the insurance company to do the right thing—make sure that you have an advocate fighting for you. Start your case now by calling our firm or contacting us online.