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Non-economic damages are a crucial component of compensation in personal injury and wrongful death cases. Unlike economic damages—which reimburse measurable financial losses like medical bills and lost wages—non-economic damages compensate for intangible harm such as pain, emotional trauma, or loss of quality of life.
They are often the largest portion of a settlement or verdict, especially in cases involving long-term suffering or life-altering injuries.
What Are Non-Economic Damages?
Non-economic damages are compensation for physical, emotional, or psychological harm that cannot be measured with receipts or invoices. They recognize the human impact of an injury—not just the financial cost.
Common examples of non-economic damages include:
- Pain and suffering — physical pain and chronic discomfort after an accident
- Emotional distress — anxiety, depression, PTSD, or fear caused by trauma
- Loss of enjoyment of life — inability to participate in activities or hobbies once enjoyed
- Loss of consortium — harm to a marital relationship or companionship
- Disfigurement or scarring — permanent physical changes affecting appearance or identity
- Loss of independence or mobility — inability to perform daily tasks without assistance
Economic vs. Non-Economic Damages
|
Category |
Economic Damages |
Non-Economic Damages |
|
Purpose |
Reimburses financial losses |
Compensates for pain and human suffering |
|
Examples |
Medical bills, lost income, rehabilitation costs |
Pain, emotional distress, disfigurement |
|
Calculation |
Objective — based on receipts/invoices |
Subjective — based on impact on daily life |
|
Caps in TN & MS? |
No |
Yes (with exceptions) |
How Are Non-Economic Damages Calculated?
There is no universal formula, but insurance adjusters, attorneys, judges, and juries typically rely on one or more of the following methods:
- Multiplier Method (Most Common)
Economic damages (e.g., medical costs + lost wages) are multiplied by a factor based on injury severity.
Example:
Economic damages: $100,000
Severity multiplier: 3× (for long-term physical pain)
Estimated non-economic damages: $300,000
- Per Diem Method
A daily monetary value is assigned to the pain and suffering endured, multiplied by the number of days the victim is expected to experience it.
Example: $200 per day × 500 days = $100,000
- Comparable Verdicts / Jury Discretion
In trial-based cases, juries review similar verdicts in Tennessee or Mississippi courts to determine fairness.
Damage Caps in Tennessee and Mississippi
Both Tennessee and Mississippi have statutory limits on non-economic damages — but important exceptions apply.
|
State |
General Cap on Non-Economic Damages |
Exceptions (No Cap Applies If…) |
|
Tennessee (Tenn. Code Ann. §29-39-102) |
$750,000 |
$1M cap for catastrophic injuries (e.g., amputations, severe burns, paralysis) |
|
No cap for intentional, reckless, or DUI-related injuries |
||
|
Mississippi (Miss. Code Ann. §11-1-60) |
$1,000,000 |
No cap in wrongful death or medical malpractice cases involving reckless conduct |
Why Legal Representation Matters
Insurance companies often dispute non-economic damages because they cannot be “proven” with receipts. A lawyer can:
- Demonstrate the full impact of your condition using medical records, psychological evaluations, and witness testimony
- Apply the most favorable calculation method
- Challenge unfair insurance offers or caps
- Pursue jury verdicts where caps may not apply
Frequently Asked Questions
What types of injuries qualify for non-economic damages?
Any injury causing significant physical pain, emotional harm, disfigurement, or lifestyle disruption—such as spinal injuries, burn injuries, brain trauma, or PTSD-inducing events—may qualify.
Can you receive non-economic damages without a physical injury?
In Tennessee and Mississippi, claims based solely on emotional distress without physical injury are rare but possible in certain intentional or extreme negligence cases.
Are non-economic damages taxable?
No. The IRS generally does not tax compensation for physical injury-related pain and suffering.
Ready to Understand the True Value of Your Case?
If you’ve been injured due to someone else’s negligence, your suffering is not just physical—and the law recognizes that.
John Michael Bailey Injury Lawyers helps clients across Tennessee and Mississippi recover full compensation for both economic and non-economic damages.
📞 Call 888-WE-FIGHT or request a free case evaluation today.
