How Do You Calculate “Noneconomic” Damages in an Oregon Personal Injury Case?

When discussing personal injury claims in Oregon, we often use the terms “economic damages” and “noneconomic damages” to describe the types of compensation that an accident victim can seek from a negligent defendant. Of the two, economic damages are easier to explain. Oregon law defines economic damages as a victim’s “objectively verifiable monetary losses;” think medical bills, lost income, and other out-of-pocket costs.

How Do You Value Non-Monetary Losses?

Noneconomic damages, in contrast, are abstract. Again turning to Oregon law, noneconomic damages are “subjective, nonmonetary losses” that a person suffers as the result of a defendant’s negligent or intentional conduct. Even though these losses are nonmonetary, a judge or jury must still assign a dollar figure to those losses in a personal injury lawsuit. And even when a personal injury claim is settled, as is more common, an insurance company still needs some method for deciding the monetary value of a nonmonetary loss.

Some common examples of non-economic damages in Oregon include:

• pain and suffering;
• mental suffering;
• emotional distress;
• humiliation;
• injury to reputation;
• loss of care, comfort, companionship and society;
• loss of consortium; and
• inconvenience and interference with normal and usual activities apart from gainful employment.

There is no mandatory formula for calculating these kinds of noneconomic damages in Oregon. Previously, the legal industry would try to use multiplier methods to assist in a determination of such damages. For example, law firms and insurance companies used to multiply the total amount of economic damages awarded in the case by a numerical factor of between 1.5 and 5 depending on the severity of the injury. However, no insurance company or reasonable personal injury attorney uses this method nowadays.  A more effective technique is the comparable case method, where we look at the amount of noneconomic damages awarded in similar past cases as a guide.

Does Oregon Limit Noneconomic Damages?

In the 1980s, the Oregon legislature passed a law limiting (or “capping”) noneconomic damages in most personal injury cases at $500,000. In 2020, the Oregon Supreme Court held that cap was unconstitutional for personal injury claims arising under common law. The Court held that such a limit violated a person’s right under the Oregon Constitution to “have remedy by due course of law for injury done him in his person.” So although the $500,000 cap remains on Oregon’s statute books, it is currently unenforceable in most personal injury cases. One area where it remains enforceable is wrongful death cases, as wrongful death is itself a creation of statute rather than common law; however there are currently cases challenging this status working their way through the courts.  Finally, Oregon law caps damages in claims against the State or other local or municipal governments.

Contact a Portland Personal Injury Lawyer Today

Noneconomic damages are a critical component of all personal injury cases. So if you have been injured in a car accident, slip and fall, or similar event, it is important that you speak with a qualified Portland personal injury attorney who can advise you of your rights. Contact Rosenbaum Law Group, PC, today at 503-288-8000 to schedule a free consultation.

Source:

oregon.public.law/statutes/ors_31.705