accident attorney Damages and Compensation 1 — Questions and Answers
Question 1: What are economic damages in an accident case?
- Quantifiable financial losses such as medical expenses, lost wages, and property damage (Correct answer)
- Compensation for emotional distress and pain
- Punitive amounts added to the verdict
- Damages capped by state statute
Correct answer: Quantifiable financial losses such as medical expenses, lost wages, and property damage
Economic damages cover out-of-pocket and calculable financial losses directly resulting from the accident.
Question 2: How is future lost earning capacity calculated in a personal injury case?
- By projecting the plaintiff's pre-injury earnings over their expected work life, discounted to present value (Correct answer)
- By multiplying the plaintiff's current salary by ten years
- By averaging the plaintiff's last three years of income
- By estimating what the plaintiff could earn in a different career
Correct answer: By projecting the plaintiff's pre-injury earnings over their expected work life, discounted to present value
Economists and vocational experts calculate future lost earning capacity based on projected wages, career trajectory, work-life expectancy, and present-value discounting.
Question 3: What is mitigation of damages in accident law?
- The plaintiff's legal duty to take reasonable steps to minimize their losses after an accident (Correct answer)
- The court's power to reduce an excessive jury award
- The insurer's right to reduce payments by any amount the plaintiff contributed
- A defendant's obligation to pay for the plaintiff's rehabilitation
Correct answer: The plaintiff's legal duty to take reasonable steps to minimize their losses after an accident
Plaintiffs must take reasonable steps to reduce their damages; failure to mitigate can reduce their recovery.
Question 4: What damages can be recovered for a wrongful death caused by an accident?
- Funeral expenses, loss of financial support, loss of companionship, and survivors' grief (Correct answer)
- Only the deceased's unpaid medical bills
- Criminal fines paid to the state
- Only lost wages for one year
Correct answer: Funeral expenses, loss of financial support, loss of companionship, and survivors' grief
Wrongful death damages typically include economic support the deceased would have provided, funeral costs, and non-economic losses like companionship and grief.
Question 5: What is the collateral source rule in accident cases?
- Damages cannot be reduced because the plaintiff received compensation from a source independent of the defendant, such as health insurance (Correct answer)
- The defendant must pay regardless of other insurance the plaintiff carries
- The plaintiff must repay any collateral benefits received
- Only the most direct source of payment is responsible for damages
Correct answer: Damages cannot be reduced because the plaintiff received compensation from a source independent of the defendant, such as health insurance
The collateral source rule prevents defendants from reducing damages owed because the plaintiff's own insurance or benefits covered some losses.
Question 6: What are general damages in a personal injury context?
- Non-economic damages such as pain and suffering, emotional distress, and loss of enjoyment of life (Correct answer)
- All economic losses calculated by adding up bills
- Damages automatically awarded in every accident case
- A fixed statutory amount paid for minor injuries
Correct answer: Non-economic damages such as pain and suffering, emotional distress, and loss of enjoyment of life
General damages compensate for subjective, intangible harms that do not have a precise dollar value, unlike special economic damages.
accident attorney Damages and Compensation 1
What are economic damages in an accident case?