After an accident in Birmingham, AL, you may be entitled to compensation for the losses you suffered. Compensatory damages refer to the compensation you are owed if someone else’s negligence or intentional wrongdoing caused you harm. The purpose of these damages is to put you in the same position you were in before your accident.
Economic damages are one of two types of compensatory damages. Here is what you should know about economic damages in Alabama, according to a Birmingham car accident lawyer.
What Are Economic Damages?
There are three types of damages available in personal injury cases in Alabama. Economic and non-economic damages are both compensatory damages. These are actual damages meant to be equivalent to the losses a victim suffered.
Economic damages refer to the quantifiable or tangible financial losses that a victim incurs as a result of the accident. Unlike non-economic damages, which cover intangible losses like pain and suffering, economic damages are concrete. They can be calculated with receipts, bills, and financial statements or projected by experts in the case of future losses.
Punitive damages, also known as exemplary damages, are the third type of damages. These damages do not compensate you for your losses. Instead, they are designed to punish a defendant for egregious behavior. In Alabama, punitive damages may be awarded by a jury in a wrongful death or personal injury lawsuit only with clear evidence of intentional “oppression, fraud, wantonness, or malice.”
This means the defendant’s behavior must go beyond mere negligence to intentional harm or knowing disregard for the life and safety of others.
Economic damages are available in virtually every personal injury case, unlike non-economic damages. This includes car accidents, premises liability accidents, and medical malpractice claims.
If your personal injury case is successful, you are entitled to receive economic damages for the financial losses caused by the accident.
Lost Wages
An accident usually requires missing work while you recover. You are entitled to seek compensation for the wages you would have earned if not for the accident.
Diminished Earning Capacity
If your injury results in long-term or permanent disability, you can seek damages for diminished earning capacity. This means you can claim compensation for the difference between what you would have earned before your injury and what you can earn now.
Calculating reduced or lost earning capacity can be challenging. It often requires vocational or economic experts.
Medical Expenses
All reasonable medical expenses related to treating your injury can be claimed, including the following:
- Emergency room treatment
- X-rays, MRI scans, blood tests, and other diagnostic services
- Surgeries
- Follow-up doctor’s visits
- Prescription medication
- Physical therapy
Make sure you keep records of all medical expenses you incur after your accident. Before you are able to recover compensation in your claim or lawsuit, you can get the care you need through medical or hospital liens. This gives medical care providers the right to file a lien against your settlement that covers your bills. This is just one possible way to pay medical bills after an accident.
Future Medical Care
If your injury requires ongoing medical treatment or future surgeries, you can claim future medical expenses. Medical specialists will often need to submit their expert opinion about the type of care you will need in the future and the projected cost.
Reasonable Out-of-Pocket Expenses
These expenses can include transportation to medical appointments, hiring help for household chores you can no longer perform, or any other incidental costs you incur due to your injury that are reasonable.
Property Damage
You are entitled to compensation for property damage caused by the other party’s negligence. This may involve the cost of repairs or even replacement of property such as a vehicle and contents damaged in a crash.
The market value of a vehicle involved in an accident is anywhere from 10% to 30% lower than the pre-accident value, even if it was completely repaired. Alabama is a diminished value state. This means you are also entitled to compensation for the reduced market value of your vehicle after a crash.
Can I Recover Economic Damages if I Was Partially at Fault?
Alabama is one of the few states that uses a contributory negligence system. This means that if you are found even 1% at fault for the accident, you cannot recover any damages. This rule makes it crucial to build a strong case demonstrating that the other party is entirely at fault.
Injury victims also have a duty to mitigate damages after an accident. This means you must exercise reasonable care to reduce the damages you suffer, including the severity and impact of your injuries. If you fail to seek medical treatment promptly or do not follow the physician’s instructions and this results in more serious or long-lasting consequences, it can affect your case. Your financial recovery can be reduced substantially if the court finds this failure to mitigate losses had a major effect on your damages.
Is There a Cap On Economic Damages In Alabama?
In Alabama, there are no caps on economic damages in personal injury cases. You can claim the full amount of your financial losses as long as you can provide sufficient evidence to prove them.
What Is the Deadline for Pursuing Financial Damages in Alabama?
To recover economic losses, you must file your personal injury lawsuit before the statute of limitations expires. Missing this legal deadline bars you from receiving any compensation.
In Alabama, the statute of limitations is two years from the date of your injury in most cases. There are only limited circumstances that can extend this deadline.
How a Personal Injury Lawyer Can Help You Recover Economic Damages
Recovering fair compensation for your losses can be challenging without an experienced personal injury attorney, particularly if you suffered serious injuries.
A skilled Birmingham personal injury lawyer can help you through every step of your case by:
- Investigating your accident and identifying parties who are liable
- Providing legal advice and guidance
- Gathering evidence to prove liability
- Calculating the full value of your damages
- Working with experts when needed to strengthen your case
- Negotiating on your behalf with insurance companies
- Fighting back against tactics to blame you or minimize your losses
- Taking your case before a jury if necessary
Contact a Birmingham personal injury lawyer at 205-206-5088 today to schedule a free consultation and discuss your case and legal options.