In personal injury litigation, damages are divided into economic damages (quantifiable monetary losses like medical bills and lost wages) and non-economic damages (physical pain, emotional distress, loss of enjoyment of life, and physical impairment).
The Multiplier Method Explained
Insurance adjusters and litigation attorneys often calculate pain and suffering by multiplying total economic damages (special damages) by a factor between 1.5 and 5. Minor injuries generally warrant a 1.5 to 2 multiplier, while severe injuries involving fractures, surgery, or permanent disability justify multipliers of 3 to 5+.
The Per Diem Method
Under the per diem ("per day") method, plaintiffs assign a daily dollar figure (often comparable to their daily earnings) for every day they endured active physical rehabilitation and acute suffering until reaching Maximum Medical Improvement (MMI).
Evidence Necessary to Prove Non-Economic Harm
Compelling evidence includes pain journals, testimony from family members detailing daily lifestyle limitations, psychiatric records for post-traumatic stress, and clinical notes from orthopedic specialists.