Auto Accident Attorney Damages and Compensation 2 — Questions and Answers
Question 1: What is the 'per diem' method for calculating pain and suffering damages?
- Assigning a daily dollar value to the plaintiff's pain and multiplying it by the number of days they have suffered (Correct answer)
- Calculating total pain costs per medical procedure
- A formula based on the number of days of lost work
- An insurance industry standard for capping non-economic damages
Correct answer: Assigning a daily dollar value to the plaintiff's pain and multiplying it by the number of days they have suffered
The per diem approach assigns a reasonable daily dollar amount to the plaintiff's pain and suffering and multiplies it by the days from injury to maximum medical improvement.
Question 2: What is the 'multiplier method' for calculating pain and suffering damages?
- Multiplying total economic damages by a factor of 1.5 to 5 based on injury severity to estimate non-economic damages (Correct answer)
- Multiplying the defendant's net worth by a fixed percentage
- Multiplying the number of medical visits by a standard dollar amount
- Using a court-mandated table to multiply injury type by weeks of disability
Correct answer: Multiplying total economic damages by a factor of 1.5 to 5 based on injury severity to estimate non-economic damages
The multiplier method estimates pain and suffering by multiplying total economic damages by a number reflecting injury severity, typically between 1.5 and 5.
Question 3: What does 'mitigation of damages' require an auto accident plaintiff to do?
- Take reasonable steps to reduce their own losses, such as following medical advice and seeking prompt treatment (Correct answer)
- Accept the first settlement offer to minimize legal costs
- Agree to binding arbitration before filing a lawsuit
- Waive future medical expenses to speed up settlement
Correct answer: Take reasonable steps to reduce their own losses, such as following medical advice and seeking prompt treatment
Plaintiffs have a duty to mitigate damages by taking reasonable steps to minimize their losses, and failure to do so can reduce their recoverable damages.
Question 4: What is 'loss of earning capacity' and how does it differ from 'lost wages'?
- Lost wages compensates past income lost; loss of earning capacity compensates for permanent reduction in future ability to earn (Correct answer)
- They are identical terms used interchangeably by courts
- Loss of earning capacity only applies to self-employed individuals
- Lost wages covers future losses; earning capacity covers past losses
Correct answer: Lost wages compensates past income lost; loss of earning capacity compensates for permanent reduction in future ability to earn
Lost wages are concrete past earnings missed due to injury, while loss of earning capacity addresses the permanent impairment of the ability to earn income in the future.
Question 5: What are 'hedonic damages' in catastrophic auto accident cases?
- Compensation for the loss of enjoyment and pleasure of life due to permanent disability (Correct answer)
- Damages for damage to luxury or high-value vehicles
- Compensation for loss of hearing due to airbag deployment
- Damages calculated based on the pleasure the defendant took in their recklessness
Correct answer: Compensation for the loss of enjoyment and pleasure of life due to permanent disability
Hedonic damages compensate for the reduced quality of life and inability to participate in activities the plaintiff previously enjoyed due to accident injuries.
Question 6: What is the significance of 'maximum medical improvement' (MMI) in auto accident damage calculations?
- MMI is the point when a patient's condition has stabilized, allowing future care costs to be projected and settlement to be finalized (Correct answer)
- MMI means the patient has made a full recovery with no permanent injury
- MMI triggers the statute of limitations to begin running
- MMI is a threshold for qualifying for punitive damages
Correct answer: MMI is the point when a patient's condition has stabilized, allowing future care costs to be projected and settlement to be finalized
Reaching MMI signals that the injury has stabilized, enabling doctors to assess permanent impairment ratings and attorneys to calculate the full value of future damages.
Auto Accident Attorney Damages and Compensation 2
What is the 'per diem' method for calculating pain and suffering damages?