How Are Economic and Non-economic Damages Different?
Economic damages compensate plaintiffs for their economic loss-lost wages and earnings, health care costs such as rehabilitation and home care, and replacing services that the injured person can no longer perform, such as childcare. Non-economic damages are paid to compensate an individual for physical and emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life, and other intangible, non-monetary losses. Non-economic damages are awarded on top of the compensation for the plaintiff’s actual economic losses. What Are Punitive Damages? Punitive damages refer to damages awarded for the purpose of punishment-to deter intentional or reckless behavior or actions motivated by malice. Punitive damages are neither economic nor non-economic damages, as they are not awarded to compensate any loss. They are intended to punish defendants for gross negligence. How Are Non-economic Damages Determined? Unlike economic damages, which can be determined using quantifiable infor
