What Are Compensatory Damages?

Accident victims in Tennessee have the right to be placed in the same position, financially and personally, as they were before their accident. When our personal lawyers represent injury victims, we work with your doctors, financial experts, employers, car mechanics, and other experts to determine the full scope of your damages – now and for the rest of your life.

Compensatory damages compensate victims for their economic and non-economic damages.

Economic compensatory damages

Economic damages are those that can be calculated based on your expenses and losses. For example, caretaking costs, your work history, the damage to your vehicle, and any other damages that you can prove with receipts, past earnings, or expert estimates. Generally, economic damages should be fairly straightforward and subject to little dispute. Essentially, economic compensatory damages include all your current and future:

• Medical expenses. These expenses include all your emergency care (including transportation to an ER center or a burn center), hospital stays, doctor visits (family doctors and specialists), rehabilitative care therapy (physical therapy, occupational therapy, vocational therapy, speech therapy, psychological therapy, and other types of therapy), assistive technology, assistive devices, and medications. Medical malpractice victims may require corrective surgeries, which should be compensable.
• Lost income. This compensatory damage category includes your wages, salary, benefits, business income losses, and any other income losses. Lost income also includes compensation if you cannot work again or at the same level of compensation as you did before the accident – for the rest of your life.
• Property damage. This amount includes the cost to fix or repair a vehicle and any other property damage (such as damage due to defective products that are harmed due to explosions), depending on the type of accident.

Non-economic compensatory damages

Non-economic damages are damages that don’t have a specific value based on bills, wage statements, or any other documents. Non-economic compensatory damages include all your current and future:

• Pain and suffering. This compensatory damage amount includes every moment you ache, have physical discomfort, itch, can’t sleep, or any other type of physical trauma. This category of damages also includes every moment of worry, stress, anxiety, or depression, and any other type of emotional trauma, because coping with injuries can be stressful and traumatic every moment of every day of your life.
• Loss of bodily function. Accident victims are entitled to compensation if they cannot use an arm, leg, or another appendage. Loss of bodily function also includes the inability to see, hear, move, walk, talk, or use any other body part in any way.
• Inability to enjoy life’s pleasures. Most accident victims are unable to play with their children, enjoy their spouses and parents, and enjoy friendships due to their injuries. These inabilities are compensable.
• Loss of consortium. Accident victims in Tennessee are entitled to compensation because they can’t enjoy the companionship and intimacy of their spouse.
• Scarring and disfigurement. Some accidents cause unsightly scars, such as burn injuries, and disfigurement, such as traumatic amputations (loss of limb). For many of these victims, the emotional trauma can be just as damaging as the physical trauma.

How do you show the amount of compensatory damages for a personal injury victim?

Our personal injury lawyers work with your doctors to obtain the diagnosis of your injuries, a medical opinion that your injuries are due to your accident or improper medical care, an itemized review of all your medical expenses to date, and all the medical expenses you are reasonably likely to incur for the rest of your life. We also work with your doctors to show what pain and suffering you are reasonably likely to have for the rest of your life.

Our Memphis personal injury lawyers work with your employer and financial experts, if necessary, to show all of your financial damages because you cannot work while you are seeking medical treatments to improve your health – and because you still can’t work after your medical condition stabilizes.

We work with car mechanics and appraisers to determine the cost to repair or replace your car, other vehicles, or other property (such as damaged cell phones and laptops).

Our lawyers also review with you and the family and friends who care for you all of the physical pain and emotional suffering that you’re experiencing.

Are punitive damages considered compensatory damages?

No. Compensatory damages are damages that victims deserve to restart their lives due to the negligence of the defendants. Punitive damages are damages that are meant to punish a defendant for wanton and malicious behavior–they are not meant to compensate a victim. We understand this can be confusing because punitive damages are payable to the victim. Punitive damages are generally applied in cases where a defendant’s actions are unconscionable, such as when a driver drives on a suspended license or drives while intoxicated.

Do I have to pay taxes on compensatory damages in Memphis and other Tennessee locations?

Tennessee does not have a state income tax, so there is no Tennessee tax on the compensatory damage award. Generally, the federal government does not tax compensatory damages either because the damages are to compensate victims for the injuries and because a large portion of the settlement or verdict is for damages other than the lost wages.

At Greer Injury Lawyers, PLLC, we’ve helped many accident victims obtain the compensatory damages they deserve. Our record of successful verdicts and settlements includes many results for more than $100,000.

To speak with an experienced Memphis car accident lawyer, give us a call today or fill out our contact form to schedule a free consultation. Greer Injury Lawyers, PLLC, is ready to help you obtain justice and restart your life. We’re here to help you receive all the compensation you deserve.