If you are familiar with personal injury law, then you’ve probably heard the term “pain and suffering.” You probably also know that in some personal injury cases you can also sue to recover damages for pain and suffering as well as for the physical damages that you sustained. But how exactly are those damages calculated?
There are two common ways to calculate pain and suffering damages: the multiplier method and the “Per Diem” method. While each of these methods has its benefits and drawbacks, the application of either method will be determined on a case-by-case basis.
The Multiplier Method
The multiplier method is the more common method of the two outlined in this post. Insurance companies and attorneys calculate pain and suffering damages with the multiplier method by taking the total amount for damages and multiplying it by a number between 1.5 and 5 depending on the severity of the damages with 5 being on the high end.
So, if the actual damages total $10,000 and the multiplier is 5, then the compensation for pain and suffering would be calculated as $50,000.
Criticisms of the Multiplier Method
While this method is simple to calculate, there are a few criticisms of the multiplier method. One criticism of the multiplier method is that the method may not accurately calculate the damages based on an individual’s needs rather it gives a range based on the cost of actual damages.
For example, assuming that the actual cost of damages is the same, suffering a torn ACL injury from an auto accident would cause more pain and suffering for an athlete than the same injury would impact an accountant as the first injury would have more severe career implications. Yet, the multiplier method would not factor this in.
The “Per Diem” Method
Another method of calculating pain and suffering damages is the “Per Diem” or daily rate method. This method calculates the cost of pain and suffering damages by applying a dollar rate to each day that a person is impacted and multiplying that number by the total number of days affected. While this equation is easy enough, the hard part lies in determining what the dollar amount is.
While it can be difficult to calculate what a person’s daily rate for compensation should be, a good strategy for calculating the daily rate is to use a person’s daily work compensation as a starting point. This is to say that the damages suffered are at least equivalent to the emotional energy that you’d expend throughout the workday though it is important to note that pain and suffering damages are separate from lost wages.
Hiring a Las Vegas Personal Injury Law Firm to Recover Damages for Pain and Suffering
If you feel that you may be entitled to recover damages for pain and suffering, contact a trusted personal injury attorney today. You can schedule a FREE consultation with the experienced attorneys at Willoughby Shulman Injury Lawyers who have recovered millions for our clients while adhering to core values of honesty and hard work. Call (702) 852-6688 today.