When you hear the term economic damages in relation to personal injury, it’s referring to the monetary losses someone experiences due to an injury caused by another party’s negligence. If you live in Texas and are dealing with a personal injury case, understanding economic damages is essential for ensuring you claim and potentially recover the compensation you deserve.
This blog post will cover what economic damages are, provide examples, and explain why they play a critical role in personal injury cases under Texas law.
What Are Economic Damages?
Economic damages are compensation for the measurable financial losses resulting from an injury. Unlike non-economic damages like pain and suffering, which are more subjective, economic damages are tangible and can be calculated with bills, receipts, pay stubs, and other documentation.
For example, if a driver in Houston caused an accident that left you injured, economic damages would account for the money you spent and lost due to medical treatment, missed work, and the property damage to your vehicle.
Types of Economic Damages
Economic damages typically fall into three main categories when it comes to personal injury cases:
1. Medical Expenses
This includes any medical-related costs incurred as a result of your injury, such as:
- Emergency room visits
- Hospital stays
- Surgeries
- Physical therapy
- Prescription medications
Essentially, all healthcare expenses directly tied to your injury are considered eligible economic damages.
2. Lost Wages and Earning Potential
If your injury prevents you from working temporarily or permanently, you can claim:
- Lost Wages for the days or weeks you were unable to work.
- Loss of Earning Capacity if you suffer a long-term disability that affects your ability to earn an income at the same level as before.
3. Property Damage
If a personal injury incident involves damage to your property—like your car in an auto accident or your home in a premise liability case—it can be included. Keep receipts and estimates for repairs to prove this type of damage.
How Are Economic Damages Calculated?
Calculating economic damages involves a detailed examination of your financial losses. Precise documentation is key—it’s not enough to claim a number without support. Here are several factors that influence the calculation of economic damages:
1. Medical Documentation: For medical costs, receipts, invoices, and even physician statements about the need for future treatments are critical.
2. Payroll Records: To prove lost wages, use pay stubs, tax returns, or letters from your employer confirming the time you needed to miss work.
3. Expert Testimony: Sometimes, economists or medical professionals provide expert testimony to establish the full scope of future losses, such as ongoing treatment costs or reduced earning potential.
For Texas residents, these calculations follow state-specific guidelines, and insurance companies may attempt to contest bigger claims. Working with a skilled personal injury attorney increases your chances of solidifying strong evidence related to economic damages.
Why Documenting Economic Damages is Crucial for Personal Injury Cases
Insurance adjusters and courts require concrete evidence to award economic damages. If you lack documentation, you’re at risk of receiving less compensation—or worse, nothing at all. A complete record of medical receipts, treatment plans, repair estimates, and income statements can make or break your case.
For instance, if someone in Austin has no medical records for their back injury after a car accident, they may not be able to recover compensation for treatment they claim to have received, weakening their case.
Your attorney can also use accurate documentation to negotiate larger settlements or win in court by demonstrating the full financial impact of the accident on your life.
Economic Damages Under Texas Personal Injury Law
Texas personal injury law allows plaintiffs (the injured parties) to recover economic damages as long as they can prove the other party was negligent and responsible for the injury. There is no cap on economic damages in Texas, except for some medical malpractice claims, meaning you can claim the actual amount of tangible losses you’ve incurred.
However, proving damages in Texas requires following rules of admissible evidence, which is why hiring an experienced personal injury attorney can be invaluable. Navigating the legal process alone often results in lost opportunities to claim every dollar you’re entitled to.
Real-Life Examples of Economic Damages in Texas Personal Injury Cases
To help paint a clearer picture, here are a couple of examples of economic damages:
- Auto Accident in Dallas: A driver runs a red light and hits your car. You suffer a broken leg, resulting in $20,000 in medical bills, $5,000 in lost wages during recovery, and $8,000 in vehicle damage. You may be eligible to recover $33,000 in economic damages.
- Slip-and-Fall in San Antonio: You fall due to a wet floor at a grocery store. Medical expenses total $15,000 for surgery and physical therapy, and you lose $3,000 in income during recovery. If the store’s negligence is proven, you can claim $18,000 in economic damages.
Final Thoughts
When pursuing a personal injury case in Texas, economic damages are more than just numbers—they are the foundation of your claim for fair and just compensation. Whether it’s covering costly medical treatments or making up for lost income, economic damages ensure the financial impact of someone else’s negligence does not fall squarely on your shoulders.
If you’ve been injured and want to maximize your claim, start by gathering proper documentation of your financial losses. Working with a qualified personal injury attorney can help you prove your case and recover the compensation you deserve.
Do you have questions about economic damages or need assistance with your personal injury case? Contact a trusted Texas personal injury attorney today.
