There are two established legal methods for figuring out the non-economic aspects of your claim.
Some claims are simple to calculate (sort of). If you’ve completed your medical treatment and returned to work, you can likely place a dollar value on your claim right now. But if you’re looking ahead to related expenses in the future, or if pain and suffering or emotional distress is a factor, then the calculations become more complicated.
If you’re considering filing a Pennsylvania lawsuit, trying to figure out how much it’s worth isn’t because you’re greedy or wanting more than you deserve. Sometimes it’s at the heart of figuring out whether the lawsuit is worth it in the first place.
Let’s face it, lawsuits cost money. The more severe your injuries, the more your lawsuit will likely cost. But it could be worth it if the damages you receive compensate for your losses.
Why do lawsuits cost so much? (Hint: It’s not the lawyers)
Hiring a lawyer might actually be the least of your expenses. Most personal injury lawyers work on a contingency fee basis. When you sign a representation retainer agreement with a personal injury lawyer, you agree that your lawyer earns a percentage of the damages you recover from the lawsuit or settlement. Usually, the amount is between 20 and 40 percent. Depending on the lawyer and the nature of the claim, this could be negotiable. You don’t pay your lawyer’s fees up front; they only get paid if you’re awarded damages.
In other words, your lawyer’s fee is not an out-of-pocket expense for you. It comes out of the settlement or verdict at the conclusion of the claim. However, while you aren’t paying up front for your lawyer, you will be paying for a variety of other costs, and these can add up quickly.
Some other expenses associated with a legal proceeding include:
- Filing fees. These come from the court, itself, and they vary based on the jurisdiction and type of claim. They are typically required in order to file the initial lawsuit.
- Court costs. Separate from filing fees, there could be additional fees for specific motions, hearings, or requests for court documents. Some courts charge for jurors, transcription services or specific actions necessary for the case.
- Expert witness fees. There can be significant fees for expert testimony, like medical experts. Experts typically charge for their time reviewing the case, preparing reports, and appearing in court.
- Deposition costs. Depositions (pre-trial testimonies recorded under oath) involve several costs, including paying for court reporters, transcripts, and sometimes videographers.
- Travel expenses. If the case requires travel for depositions, court appearances, or meeting with witnesses, travel-related costs can include airfare, lodging, and meals.
- Discovery costs. The discovery process, where both parties exchange information and evidence, can generate costs. This could involve document production, hiring e-discovery vendors, or copying and printing large volumes of materials.
- Service of process. Fees might be incurred to serve legal documents (such as summonses or subpoenas) on the other party.
- Mediation or arbitration fees. If the case is referred to mediation or arbitration to resolve the dispute out of court, there may be associated costs for hiring a mediator or arbitrator.
- Appeal costs. If a case is appealed, there can be filing fees for the appeal and legal fees for drafting and filing appellate briefs.
- Administrative costs. These can include costs related to managing the case, such as photocopying, postage, and office supplies.
These aren’t exactly “hidden” costs, but they’re definitely things you might not anticipate when you’re filing a lawsuit—it also doesn’t mean you shouldn’t go ahead with your claim. But it’s important to really consider the value of your claim and whether the actual result (amount of damages you can receive) is worth what you’re putting into it, both with respect to the actual financial cost and the time, energy, and emotional toll a lawsuit might take.
Calculating the value of your Pennsylvania lawsuit
At the heart of personal injury law is making a plaintiff (injured person) whole. In the law, that’s defined as restoring them to the financial condition they would be in if the accident or injury hadn’t happened. When you hear on the news about a plaintiff with a serious injury receiving a multi-million dollar damage award, it sounds like a huge number. But in actuality, that is the cost of supporting themselves and their family for the rest of their life—for someone who can no longer work, or if the accident has taken essential function from their body, or if their life is forever changed—it sounds like a lot of money, but it’s based on putting a dollar value on their actual losses.
Losses are split into two categories: Economic and non-economic.
Economic damages are tangible financial losses that directly result from an injury or accident.
These include:
- Medical expenses, including current and future medical bills like hospital visits, surgeries, rehabilitation, prescription medication, and any necessary medical equipment.
- Lost wages, present and future. This could include lost wages because you’re unable to return to a job in the capacity you had prior to the injury. It also includes loss of earning potential for a long-term disability.
- Property damage that would include the cost of repairing or replacing a damaged vehicle if it’s a car accident claim.
- Out of pocket expenses, including any additional expense related to the injury, like transportation to medical appointments, home care, child care, cleaning assistance, etc.
Non-economic damages are harder to quantify, but still matter financially. The reason financial damages are awarded for these “costs” is because although they don’t have a direct monetary equivalent, the legal system recognizes that they affect the victim’s quality of life. It therefore assigns a financial value to these losses.
- Pain and suffering includes compensation for the physical pain related to the injury.
- Emotional distress covers psychological trauma like anxiety, depression, post-traumatic stress disorder (PTSD) and loss of enjoyment of life.
- Loss of consortium is a cause of action if the injury negatively affects the plaintiff’s relationship with a spouse or family member, or if they’ve lost their companionship or services.
How does the court calculate a subjective loss?
Economic damages aren’t exactly easy to quantify, particularly when they involve long-term medical care or loss of earning potential. But professionals like actuaries and medical experts have years of experience determining the correct amount of money for these kinds of losses based on the severity of the victim’s injuries.
Non-economic damages are harder to quantify because they are based on subjective experiences. Courts and juries use various factors, such as the severity of the injury, its long-term effects, and testimonies from doctors or psychologists, to assign a financial value to non-economic damages.
The per diem method
“Per diem” is the Latin phrase for “per day.” If your case uses this approach, your lawyer would calculate for how many days your pain is likely to last, along with a reasonable estimate of your daily wages. So if you earn $100 per day and your lawyer estimates your injury or pain and suffering to last for two years, then you could claim $730,000 in pain and suffering.
The Multiplier Method for pain and suffering
This is a tool used by the courts to transform pain and suffering into a tangible value. Your lawyer will evaluate the amount of your claim and the severity of your injuries, and then assign a number between one and five that represents your damages.
So, for instance, if the injury cost you $100,000 in medical treatment costs, your lawyer might say that’s a three on the 1-5 scale. Therefore, they would begin to negotiate with a damage demand of $300,000 to include your pain and suffering.
Factors that affect the multiplier amount:
- The length of your recovery
- Impact of the injury on quality of life
- Severity of the injury
- Your family’s suffering as a result of the injury
- If there’s a lifelong disfigurement or loss of use of an organ or body part
- Comparative negligence
Why does comparative negligence matter?
Pennsylvania follows the Modified Comparative Fault Rule (also known as the 51% rule).
The Pennsylvania comparative negligence rule allows a plaintiff in a personal injury case to recover damages even if they are partially at fault for the accident, but with limitations.
- Partial fault. If the plaintiff is found to be partially responsible for their own injury, their compensation is reduced by their percentage of fault. For example, if they are deemed 20% at fault, the total damages awarded will be reduced by 20%.
- 50% limit. A plaintiff can recover damages if they are not more than 50% at fault. However, if their fault exceeds 50%, they are barred from receiving any compensation.
Therefore, in evaluating the likely damage outcome for your case, you need to consider whether you might be liable for a portion of the injury, therefore reducing your amount of compensation.
Sample Pennsylvania personal injury damage calculation
| Element / cost | Hypothetical amount | |
|---|---|---|
| a. | Medical expenses | $50,000 |
| b. | Property damage | $30,000 |
| c. | Lost earnings | $200,000 |
| d. | Loss of earning potential (future lost income) | $600,000 |
| e. | Estimated future medical expenses | $300,000 |
| f. | Total economic damages (a + b + c + d + e) | $1,180,000 |
| g. | Multiplier for general damages (x1, x2, x3, x4, or x5) | x 3 |
| h. | Non-economic damages (pain and suffering, etc.) = Total (f x g) | $3,540,000 |
| Economic damages + Non-economic damages |
$1,180,000 + $3,540,000 |
|
| Case value = Total (f + h) | $4,720,000 |
Again, this is a hypothetical scenario based on medical treatment and such totaling these supposed amounts. Your own case will vary from this situation. Ultimately, whether your lawyer chooses the per diem method or the multiplier method will be a strategic move based on which is likely to yield a higher award.
When a lawyer decides whether to take your case, they likely compute some sort of calculation of your damage award to see if it’s worthwhile. They will calculate the case value and then deduct other fees to determine what you’re likely to receive. This is based on years of experience, practice, and consultation with various experts—it’s not a figure the average person can calculate on their own. If you’ve been injured, your best approach is to contact a Pennsylvania personal injury lawyer for guidance and specifics about your case’s value.
See our guide Choosing a personal injury attorney.