Economic vs Non-Economic Damages: What’s the Difference?
In a personal injury case, the compensation you receive depends on the losses you’ve experienced. These losses may include medical bills, missed work, emotional distress, and other impacts on your day-to-day life.
To figure out what you may be entitled to recover, you need to understand the difference between economic vs non-economic damages. Here’s what you need to know, including what these losses are, how they’re calculated, and what Florida law allows.
What Are Economic Damages?
Economic damages are the financial losses an injured person suffers from after an accident. These are measurable costs that can be proven through various forms of documentation, like medical bills or proof of lost income. The purpose of economic damages is to compensate the injured party for the actual money they’ve already lost or will lose because of the injury.
Common Types of Economic Damages
Florida Statute 768.81 outlines the types of financial losses that qualify as economic damages. Common examples include:
- Medical expenses, such as hospital visits, emergency care, diagnostic tests, physical therapy, and rehabilitation
- Lost income, including wages lost during recovery, reduced earning capacity, or loss of future income
- Property damage, such as repair or replacement of vehicles or personal property
- Out-of-pocket expenses, like transportation to medical appointments, medication costs, and home care assistance
- Funeral and burial costs (in wrongful death cases)
- Loss of support and services
Each of these losses must be tied directly to the injury and supported by relevant evidence.
What Are Non-Economic Damages?
Unlike economic damages, non-economic damages cover the emotional and personal toll of an injury. These are intangible losses and are more difficult to quantify as they can’t be measured by receipts or bills. However, in serious injury cases, these damages often outweigh the financial loss.
Common Types of Non-Economic Damages
Per Florida Statute 766.202, a plaintiff may be entitled to recover non-economic damages depending on the nature of the injury and the circumstances of the case. Either the court or settlement negotiations determine these damages, which must be supported by documentation that shows the extent of the harm. Examples of non-economic damages include:
- Pain and suffering
- Emotional distress or mental anguish
- Physical impairment or disability
- Disfigurement or scarring
- Loss of enjoyment of life
- Loss of companionship or consortium
How Are Damages Calculated in a Personal Injury Case?
In Florida, jurors receive specific instructions on how to evaluate and assign dollar amounts to each type of damage based on the evidence presented. This evidence can include:
- Medical bills, hospital records, and receipts for treatment
- Pay stubs and employer statements verifying lost wages
- Expert testimony on long-term medical needs or lost earning potential
- Witness accounts describing the physical and emotional impact
- Photographs or videos showing injury progression or impairment
However, damages are only rewarded if you win your case. Florida personal injury claims are based on negligence, which means your attorney must prove the following four elements:
- The defendant had a legal obligation to act reasonably to prevent harm.
- The defendant failed to meet that obligation through action or inaction.
- That failure directly caused your injury.
- You suffered financial, physical, or emotional harm as a result.
If any of these elements are missing or fall short, the court will not award damages. If you’ve been injured in an accident, be sure to save any and all documentation as it could help you win your case.
Does Florida Have a Cap on Damages?
Florida does not place a cap on economic or non-economic damages; however, there are exceptions.
For example, under Florida Statute 768.28, state and local government agencies are protected by sovereign immunity. If your injury involves a public hospital, city bus, or law enforcement officer, the amount you can recover is limited to:
- $200,000 per person
- $300,000 per incident (total for all claimants)
There are nuances to these limits, so it’s important to speak with a personal injury attorney who understands how Florida damage caps could affect your recovery.
Can You Recover Both Types of Damages?
Yes, you may be eligible to recover both economic and non-economic damages in your personal injury case. These are called compensatory damages.
An example of when these damages may be applicable is if you’re hit by a distracted driver and suffer from physical pain, like a broken leg. Economic damages would include the cost of your emergency room visit, surgery, and follow up care. Non-economic damages, on the other hand, would cover your pain and suffering and loss of consortium from missing out on work or daily activities; however, in auto cases, you can only claim non-economic damages if there’s a permanent injury.
Keep in mind, Florida follows a modified comparative fault rule under Florida Statute 768.81. This means you can still recover damages if you were partially at fault, as long as your share of fault is 50% or less. However, if you are found more than 50% at fault, you cannot recover any compensation.
As insurance companies will try to minimize fault on their client’s end, you’ll want to make sure you have an experienced lawyer by your side who can help assess liability and build a strong case that works in your favor.
How Long Do You Have to Pursue Damages in Florida?
In Florida, you have two years from the date of the accident to file a personal injury claim per the state’s statute of limitations. If you miss this deadline, the court will most likely dismiss your case, and you may lose the right to pursue compensation, regardless of how strong your claim may be. That being said, there are exceptions:
- Florida Statute 95.11 states that a medical malpractice lawsuit must be filed within 2 years of the incident. However, if you discover the injury later within that 2-year window, you have 2 years from the date of discovery to file. This timeframe is capped at 4 years total, unless fraud or concealment delayed discovery, in which case, you have up to 7 years to file. For children, the 4-year limit doesn’t apply if the claim is filed on or before the child’s 8th birthday.
- In product liability cases, Florida imposes a 12-year statute of repose for injuries caused by products with a useful life of 10 years or less. Per Florida Statute 95.031, this timeline starts from the date the product was delivered or sold.
Contact a Gainesville Personal Injury Attorney Today
If you’ve been injured in an accident, you may be entitled to recover economic damages, non-economic damages, or even both if your case calls for it. The seasoned Gainesville personal injury lawyers at Fine, Farkash & Parlapiano, P.A. are ready to help you understand your rights, gather the evidence you need to prove your losses, and fight for the full compensation you deserve.
The clock is ticking. Contact our office today for a free consultation.
Sources:
766.202 Definitions | The Florida Legislature
Civil Jury Instructions | The Florida Bar
766.118 Determination of noneconomic damages | The Florida Legislature
768.81 Comparative fault | The Florida Legislature
95.11 Limitations other than for the recovery of real property | The Florida Legislature
95.031 Computation of time | The Florida Legislature
627.737 Tort exemption; limitation on right to damages; punitive damages | The Florida Legislature
Mr. Fine was born in New York, New York, and was raised in the northeast, where he studied sociology at Colby College in Waterville, Maine. He then graduated with honors from the University of Florida Levin College of Law in 1976. In law school, he was a member of Phi Kappa Phi Honor Society, was inducted into the Order of the Coif, and graduated in the top 10 percent of his class. Mr. Fine was admitted into the Florida Bar in 1976, the United States District Court for the Middle District of Florida in 1977, the United States District Court for the Northern District of Florida in 1991, and the United States Court of Appeals 11th Circuit in 1982.