Damages assessment is the process of calculating the total monetary value of a client's losses resulting from an injury-causing event. This evaluation forms the foundation of case strategy and informs decisions about whether to accept a case, what settlement amounts to pursue, and how to allocate resources during litigation.
Economic damages typically include: medical expenses (past and future); lost wages and lost earning capacity; property damage; and out-of-pocket costs. Non-economic damages, which are more subjective, encompass pain and suffering, emotional distress, loss of consortium, and diminished quality of life. Some jurisdictions also allow for punitive damages in cases involving egregious conduct.
Accurate damages assessment requires gathering comprehensive documentation: medical records and bills, employment records, expert testimony on future care needs, and evidence of how the injury has impacted daily life. PI firms often use specialized calculators and databases to estimate damages ranges, though experienced attorneys apply judgment based on jurisdiction-specific factors and comparable case outcomes.