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Economic Damages
Of the types of compensation available in a personal injury case, economic damages are the easiest to calculate
In personal injury cases, economic damages refer to the quantifiable losses you sustain after an injury caused by another person’s carelessness or negligence. This type of compensation includes losses that have a concrete dollar value, such as your medical expenses, lost income, and incidental expenses, to name just a few. These losses are also known as ‘special damages’ in New York.
Economic damages are often the easiest to prove after an accident. You can establish them by presenting an invoice from a hospital, past pay stubs, and repair estimates. Below, our Buffalo personal injury lawyer explains in greater detail.
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More than $100 million recovered in verdicts and settlements for those injured in New York.
How We Can Help
- How can our Buffalo personal injury lawyers at O’Brien & Ford PC help after an accident?
- Common types of economic damages in Buffalo personal injury cases
- How do economic damages differ from non-economic damages?
- How does comparative fault impact economic damages?
- How does no-fault insurance in New York affect economic damages?
- No cap on economic damages in New York
- How to prove economic damages
- How to maximize economic damages
- FAQs about economic damages
- How to find a Buffalo personal injury lawyer near me
- Our personal injury lawyers in Buffalo can accurately value your claim
How can our Buffalo personal injury lawyers at O’Brien & Ford PC help after an accident?
A car crash, slip and fall, or other type of accident claim can turn your world upside down. You may have to learn how to accommodate your serious injury, your medical bills may be piling up, and you may also experience significant emotional distress. At O’Brien & Ford PC, our Buffalo personal injury lawyers can stand by you throughout the entire process and ensure your rights are protected.
Our legal team has over 84 years of collective experience going up against insurance companies, government entities, and other liable parties on behalf of our clients. We have been recognized in the Top 50 Upstate New York Super Lawyers and as Western New York Legal Elite. We offer a free, one-hour consultation to review the facts of your case and familiarize ourselves with your goals so we can always act in your best interest. You also do not pay any attorney fees unless we successfully recover a settlement or verdict in your favor.
We do not look for fights, but if one comes up, you want us by your side.
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“The professionalism I received from the entire staff was great. Christopher Pannozzo, Annat and John worked tirelessly to get me the justice I deserve. Even Patrice the receptionist was professional and always a joy to talk to. Thank you guys for the hard work and taking my case.”
“I highly recommend O'Brien & Ford, P.C. to anyone who has been injured and needs someone they can trust. I’m extremely thankful for everything Anant and his team did for me and for the way I was treated throughout the entire process. They were professional, knowledgeable, and always took the time to explain things clearly and answer my questions. I would highly recommend this law firm.”
Common types of economic damages in Buffalo personal injury cases
There are many different categories of economic damages, and each of them represents the financial harm caused by serious injuries. They include:
Past and future medical expenses
The majority of economic damages usually stem from medical expenses. Past medical expenses include the fees you have already paid or the invoices you have already received due to the injury, such as the emergency room visit or CT scans. Future medical expenses refer to the costs you will likely be expected to pay over the long term. Many people do not account for future losses because they do not have concrete documentation proving them yet.
Lost income
Damages for lost income help you recover the salary or wages you were unable to earn due to the injury. In addition to your income, you can also pursue compensation for overtime, tips, and employment benefits. Employees often present pay stubs, employment letters, and W-2s to prove their lost wages. Self-employed individuals often rely on invoices and tax returns to prove lost income.
Loss of future earning capacity
There is an important difference between lost wages and loss of future earning capacity. The latter refers to the permanent or long-term loss of income if you cannot return to the same line of work. It covers the difference between what you would have earned over the remainder of your career and what you are realistically expected to earn after the injury.
Property damage
After a car accident, a property damage claim can cover the cost of repairing or replacing your vehicle. You can also pursue compensation if your personal items, such as a phone, laptop, eyeglasses, or clothes, were damaged during the accident.
Out-of-pocket expenses
You will pay many out-of-pocket expenses, and while these are smaller amounts, they do add up. These incidentals may include parking, tolls, mileage, and rideshare fees.
How do economic damages differ from non-economic damages?
Economic damages have a concrete dollar value, whereas non-economic losses do not. Non-economic damages are subjective and intangible. They do not come with an invoice or receipt. Instead, they are losses such as emotional distress, pain and suffering, and loss of enjoyment of life.
In New York personal injury cases, both types of damages are compensable. If your case goes to trial, they will both be calculated and listed separately. Under New York law, a jury will also break them down into distinct items. When economic damages are well documented, it can strengthen the case for non-economic damages, as well.
How does comparative negligence impact economic damages?
New York follows pure comparative negligence law. This means that if you contributed to the accident that caused your injuries, the compensation you receive is reduced by the same percentage of fault. For example, if you were awarded $100,000 in economic damages and were found 10 percent at fault, you would receive $90,000.
The pure comparative negligence law allows you to pursue compensation even if you were mainly to blame for your injuries. There is an exception to the law for auto accidents. After a car crash, injured individuals can only claim compensation if their degree of fault is not greater than the defendant’s, or the combined fault of all defendants.
How does no-fault insurance in New York affect economic damages?
If you were injured during an auto accident, the no-fault insurance system in New York is your first option for recovering economic damages. The applicable no-fault insurer may pay up to $50,000 of basic economic loss, which mainly refers to medical expenses and lost income, regardless of which driver caused the collision.
You can pursue economic damages that exceed your basic economic loss. To pursue non-economic damages, you must meet the serious injury threshold outlined under the law. That threshold includes injuries such as broken bones, a significant disfigurement, and the permanent loss of use of a body function, organ, member, or system. The no-fault system only applies to car crashes and does not impact other types of accident claims, such as slip and falls.
No cap on economic damages in New York
Some states place a cap, or limit, on the amount of damages a person can recover through a lawsuit. In states that do place a cap on compensation, it usually applies to non-economic damages or the total amount received. In New York, there is generally no statutory cap on economic damages you can recover through a personal injury claim.
How to prove economic damages
Economic damages are fairly easy to prove as long as you have the documentation showing the dollar amount. It is critical to save all records, starting from the day of the accident. Safely store every receipt, bill, invoice, and any explanation of benefits the insurance company sends you. Ask any medical provider for the records pertaining to your treatment. Request a letter from your employer detailing the dates of work you missed, your salary or hourly wage, and if you used paid time off during your recovery.
Calculating future economic losses is not as straightforward, but this does not mean it is impossible. Often, expert testimony can determine the total amount of future losses you will sustain. Your Buffalo personal injury lawyer can obtain testimony from the physician treating you. If your injuries are very serious, they may also ask a life care planner to value the future cost of care.
How to maximize economic damages
The steps you take after an accident can greatly impact your claim and any economic damages you recover. The following tips can help ensure you obtain the full compensation you deserve:
Seek immediate medical attention
It is critical that you visit an emergency room or urgent care center as soon as possible after any accident. Any gap between the accident and initial medical treatment can be used against you by the insurance company to claim that you were not really injured. Also follow any medical advice throughout the entire healing process.
Keep all evidence
Again, economic damages are proven largely through documentation. Keep all records pertaining to the accident, as proving your losses will be much more difficult without them.
Return to work only on medical advice
Do not return to work until your doctor has cleared you to do so. If you return to work before your doctor says it is safe, the insurance company will use this to argue that you have fully recovered, even if you are still in significant pain.
Understand future care costs
Accident victims are often eager to accept a settlement because they are happy to receive anything at all. Accepting a fast settlement before you fully understand your future care needs, though, often means leaving money on the table. Your lawyer will know the experts to work with that can accurately determine the cost of future care.
FAQs about economic damages
Are economic damages taxable?
Typically, accident victims do not pay state or federal taxes on compensation received in personal injury cases. Interest on the award and punitive damages may be taxed.
Can I pursue damages for household chores?
How is loss of future earning capacity calculated if I just started my career?
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How to find a Buffalo personal injury lawyer near me
Our offices are located at 4549 Main Street, Suite 201, and 701 Seneca Street, Suite 208, in Buffalo, New York. We are also happy to serve clients in Lackawanna, West Seneca, Cheektowaga, Depew, and throughout Erie County.
O’Brien & Ford, P.C.
4549 Main Street, Suite 201
Buffalo, NY 14226
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701 Seneca Street, Suite 208
Buffalo, NY 14210
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Our personal injury lawyers in Buffalo can accurately value your claim
When filing a personal injury claim, accurately valuing your losses is essential to make sure that you receive the full and fair settlement you are entitled to. At O’Brien & Ford PC, our Buffalo personal injury lawyers can review all the facts of your case to account for all damages you sustained and negotiate on your behalf to ensure all of your losses are covered. Call us now or fill out our online form to schedule a free consultation with one of our experienced attorneys.