It may seem like the news is often filled with stories of people who filed lawsuits against major corporations or other parties and received verdicts awarding them millions of dollars. The numbers involved in these cases can be massive, adding up to more than the average person could ever expect to earn in their lifetime. Because of this, many people view these types of lawsuits as frivolous. Should a person really receive millions of dollars because they were injured in a car accident or by a defective product?
While the amounts of major verdicts may seem to be excessive, they are actually calculated precisely based on the ways victims have been affected. The goal is not to simply give someone a lot of money, but to make sure they will be fully compensated for the harm they have suffered and the ways their life has been affected. With an understanding of the factors that may affect verdicts, the reasons why people are awarded large amounts of money can become clearer.
In a personal injury or medical malpractice case, the goal of a verdict is to fully compensate the victim for the damages they have suffered. The plaintiff (the person bringing the lawsuit) may be awarded multiple different types of damages that the defendant (the person accused of causing the plaintiff to suffer an injury) will be required to pay.
A significant portion of the compensation awarded will consist of economic damages. These are meant to address the actual financial losses the victim has experienced, as well as the losses they will experience in the future. These damages may address losses such as:
Another category of compensation is known as non-economic damages. This compensation will address the ways someone has been personally affected. For example, a person's quality of life may have decreased because they are in near-constant pain due to the injuries they have suffered. Disabilities may have affected a person's ability to participate in activities they used to enjoy, spend quality time with their family, travel, or even move around their home. They may experience emotional trauma as they struggle to come to terms with how their life has changed.
It can be harder to place a monetary value on a person's non-economic losses, but the juries that issue verdicts may take steps to address these issues by awarding what they believe is an appropriate amount. The goal is to ensure that a person will have the resources they need to address the harm they have suffered and move forward with their life.
One final category of compensation that may be awarded in a verdict is known as punitive damages. These damages are meant to serve as punishment for the defendant, and they may address egregious actions or gross negligence, such as when a defendant knew that their actions were likely to result in harm to others but disregarded those risks.
For example, a company that released a product that was known to be defective could be penalized for its failure to take steps to protect the safety of people who used the product. Juries will determine the amounts of punitive damages that they believe are appropriate, and these calculations may be based on factors such as the profits that a company earned from the sale of defective products.
A verdict may also address the legal fees and other expenses involved in a case. When building a case, a plaintiff's attorney will make an effort to gather all relevant evidence so that they can prepare arguments and demonstrate the full extent of the victim's damages. They may need to work with expert witnesses, such as accident reconstructionists or medical professionals who can evaluate the ways a person's injuries will affect them in the future. The costs of preparing a case can be significant, and the compensation awarded to a plaintiff can make sure all of these expenses will be fully covered.
Jury Atlas compiles major verdicts that are issued in personal injury and medical malpractice lawsuits, as well as other types of cases. View recent notable verdicts or learn more about the types of verdicts that can result in large monetary awards or the differences between verdicts and settlements. Contact us for more information.