What Are General Damages, and How Are They Calculated?

General damages play a vital role in civil litigation, addressing non-economic harm that cannot be easily quantified in monetary terms. They encompass losses such as pain and suffering, emotional distress, and loss of enjoyment of life, which profoundly impact a plaintiff’s quality of life. Unlike special damages, which cover tangible financial losses, general damages focus on compensating for the intangible effects of an injury or wrongful act. Understanding the principles and methods behind awarding general damages is crucial for both legal professionals and plaintiffs seeking fair compensation. This article explores the types, legal standards, and challenges associated with general damages, shedding light on their importance in achieving justice.

By Brad Nakase, Attorney

Email  |  Call (888) 600-8654

Have a quick question? I answered nearly 1500 FAQs.

  1. Introduction to General Damages

Defining General Damages

General damages are awarded to compensate for non-economic harm that cannot be precisely measured. These damages include pain and suffering, emotional distress, and loss of enjoyment of life, among others. They differ from special damages, which are calculable monetary losses such as medical bills, and punitive damages, which are meant to punish the defendant rather than compensate the plaintiff.

For example, in a personal injury case, a plaintiff may claim special damages for hospital expenses and lost income, while also seeking general damages for the emotional trauma and physical pain endured as a result of the injury. General damages acknowledge that not all harm can be monetarily quantified, yet the injured party deserves fair compensation.

Importance in Civil Litigation

The role of general damages is particularly significant in cases involving personal injury, defamation, and other torts where non-economic harm often constitutes the primary injury. These damages serve to provide a measure of justice by addressing the full spectrum of harm caused by a defendant’s actions.

  1. Types of General Damages

Understanding the various categories of general damages helps illustrate their broad application in civil law. Some of the most common types include:

Pain and Suffering

This category encompasses the physical pain experienced due to an injury or condition caused by the defendant’s actions. For instance, chronic back pain from an accident falls under general damages.

Emotional Distress

Emotional distress general damages address psychological harm, such as anxiety, depression, or post-traumatic stress disorder (PTSD), that results from the incident. Emotional trauma is especially prevalent in cases involving harassment, defamation, or severe accidents.

Loss of Enjoyment of Life

This category compensates for the diminished ability to enjoy life’s pleasures, such as participating in hobbies or spending time with loved ones. For instance, a professional athlete who can no longer play their sport due to an injury might claim general damages for loss of enjoyment of life.

Loss of Consortium

Loss of consortium refers to the deprivation of companionship, affection, or intimacy within a familial or marital relationship. This type of general damages is often sought by the spouse or family members of the injured party.

Disfigurement and Physical Impairment

When an injury results in permanent scarring or physical impairment, general damages may be awarded to address the long-term impact on the plaintiff’s appearance and functionality.

Reputational Harm

In defamation cases, general damages often include compensation for reputational harm, which encompasses the emotional distress and societal consequences of losing one’s good name.

These categories demonstrate the versatility of general damages in addressing a wide array of non-economic harms.

  1. Legal Principles Governing General Damages

Standards for Awarding General Damages

Courts rely on a variety of principles when assessing general damages. These include the “reasonable person” standard, which evaluates how a typical person in the plaintiff’s situation might have been affected. For instance, a court may consider whether a reasonable person would find the plaintiff’s emotional distress credible given the facts of the case.

Proportionality is another guiding principle. Courts strive to ensure that the damages awarded are proportional to the severity of the harm suffered. For example, a minor inconvenience is unlikely to result in a significant general damages award.

Judicial Discretion

Judges often have broad discretion when determining the amount of general damages. This discretion is guided by precedent, statutes, and the unique circumstances of each case. For example, in cases involving severe emotional trauma, a court may rely on expert testimony to assess the extent of the harm and its appropriate compensation.

Relevant Statutes and Precedents

In some jurisdictions, statutes may impose caps or limitations on general damages. For instance, certain personal injury cases may have statutory limits on awards for pain and suffering. Precedents also play a crucial role, as courts look to previous rulings to guide their decisions on similar cases.

  1. Quantifying General Damages

Challenges in Quantification

The inherent subjectivity of general damages makes their quantification challenging. Unlike medical bills or lost income, which have clear monetary values, the impact of pain, suffering, or emotional harm varies widely among individuals. This subjectivity often leads to discrepancies in awards.

For instance, two plaintiffs with similar injuries may receive vastly different general damages awards based on their individual experiences and the persuasiveness of their evidence.

Methods of Calculation

Despite these challenges, courts and attorneys have developed methods to estimate general damages:

  • Multiplier Method: This approach involves multiplying the plaintiff’s economic damages (e.g., medical expenses) by a factor that reflects the severity of the non-economic harm. For instance, a severe injury might warrant a multiplier of 5, while a minor injury might use a multiplier of 1.5.
  • Per Diem Method: This method assigns a daily monetary value to the plaintiff’s pain and suffering and multiplies it by the number of days the plaintiff is expected to endure the harm. For example, if daily suffering is valued at $100 and the plaintiff is expected to recover in 200 days, the general damages would amount to $20,000.
  • Expert Testimony: Psychologists, medical professionals, or vocational experts may provide testimony to support claims for emotional distress or loss of enjoyment of life.

Caps and Limitations

Some jurisdictions impose caps on general damages, particularly in medical malpractice cases. These limitations aim to prevent excessively high awards that could burden defendants or inflate insurance costs.

  1. Critiques and Challenges of General Damages

Subjectivity and Unpredictability

Critics argue that the subjective nature of general damages leads to inconsistencies in awards. For instance, juries in different regions may award vastly different amounts for similar injuries based on cultural or personal biases.

Risk of Arbitrary Awards

The lack of standardized guidelines increases the risk of arbitrary or excessive general damages awards. Defendants may face uncertainty, while plaintiffs may struggle to anticipate the potential value of their claims.

Socio-Economic Considerations

Disparities in general damages awards often reflect broader societal inequities. Plaintiffs from affluent backgrounds may receive higher awards due to perceived higher standards of living, while others may be undervalued.

Potential Solutions

Legal scholars and lawyers have proposed several solutions to address these challenges, including:

  • Standardized award guidelines for common injuries.
  • Enhanced judicial training to reduce bias.
  • Greater reliance on expert testimony to provide objective assessments.
  1. Example of General Damages

A practical approach to understanding general damages involves applying these principles to hypothetical scenarios. Consider the following case:

Fact Pattern:
A 35-year-old professional pianist suffers a hand injury due to a car accident caused by a negligent driver. The injury requires multiple surgeries and leaves the plaintiff with limited mobility in their fingers. As a result, they are unable to continue their career and experience significant emotional distress.

Plaintiff’s Argument

The plaintiff seeks general damages for:

  • Pain and suffering caused by the injury and recovery process.
  • Loss of enjoyment of life, as they can no longer play the piano.
  • Emotional distress, including depression and anxiety.

Defense’s Argument

The defense argues that:

  • The plaintiff can still perform other activities unrelated to piano playing.
  • The emotional distress claims are exaggerated and lack sufficient evidence.

Discussion Points

  • How should the court assess the plaintiff’s claims for pain and suffering?
  • Should the plaintiff’s unique circumstances (e.g., their profession) affect the damages award?
  • What methods of quantification would be most appropriate in this case?

Conclusion

General damages are a critical component of civil litigation, addressing the intangible harm suffered by plaintiffs in a variety of cases. By understanding their types, legal principles, methods of quantification, and associated challenges, legal professionals can advocate effectively for fair compensation. While subjectivity and unpredictability remain challenges, tools like the multiplier and per diem methods, along with judicial discretion, help navigate these complexities. Through practical application and critical discussion, legal practitioners and students can deepen their understanding of this essential aspect of the law.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment Law

Most recent blogs:

How to Trademark Your Business Name

How to Trademark Your Business Name

Protect your business name with trademark registration to ensure exclusive rights and safeguard your brand identity from infringement. Follow our step-by-step guide to navigate the trademarking process effectively while avoiding common pitfalls.

Service Charge vs Tip: Is the service charge the same as a tip?

A service charge is mandatory, and a tip is at the discretion of the customer.  Under California law service charges are not considered tips.  Service charges are the amount a customer is required to pay in addition to the beverages and foods purchased at a restaurant.  Service charges belong to the restaurant and not to the employees.

When Is a W-9 Not Required?

A W-9 is not required when payments to a vendor are under $600 in a calendar year. Payments made through credit card processors or platforms like PayPal also do not require a W-9.

Is Small Business Loan Secured or Unsecured

A secured loan places the burden of risk on the borrower. An unsecured loan shifts the burden of risk more to the lender. A small-business loan is secured when backed by specific collateral, typically business assets, such as equipment, inventory or real estate. Secured loans, including those secured by the Small Business Administration (SBA), typically range from $50,000 to $5 million. 

Where Can I Cash a Business Check?

Business check may be cashed at a check-cashing service: Walmart Money Center, Payday Advance, Ingo Money, Moneytree, Money Mart, ACE Cash Express, Speedy Cash, etc.
What Does Net Income Mean for Businesses and Individuals

What Does Net Income Mean for Businesses and Individuals?

Net income, often called "the bottom line," measures financial health by showing the remaining profit after expenses and deductions. For individuals and businesses, net income is a critical metric influencing budgeting, performance assessment, and decision-making.
What Is a Business Plan Executive Summary

What Is a Business Plan Executive Summary?

An executive summary in a business plan outlines your company's mission, market positioning, and financial projections in a concise format. It highlights key points to capture investors' interest, acting as a compelling introduction to your business plan.

Average Revenue For Small Business

Small businesses with no employees have an average annual revenue of $52,000. The average small business owner makes $73,000 a year. In general, the average revenue is around $52,000 per year for a company with a single owner/employee.
What Is the Legal Definition of False Advertising

What Is the Legal Definition of False Advertising?

False advertising involves untrue or misleading claims about products or services, violating laws enforced by the FTC and state authorities. Companies face legal consequences like fines, lawsuits, and cease-and-desist orders for deceptive practices under statutes like the Lanham Act and California's False Advertising Law.

Payment Upfront Meaning & 5 Tips for Getting Upfront Payments from Customers

Upfront payments can be beneficial to many small business owners. Upfront payments protect the owner emotionally and financially. There is no fear of customers disappearing without paying for products or services. It is also a great method by which to build trust with customers. It can also help improve cash flow, thereby letting the business grow and flourish.

How to Calculate Business Profit

A business profit is revenue minus expenses. The profit formula in accounting calculates the net gains or losses incurred by the business for a period by subtracting the total expenses from the total income: Total Income – Total Expenses - Profit
What Are the Benefits of Using a DBA (Doing Business As)

What Are the Benefits of Using a DBA (Doing Business As)?

A DBA (Doing Business As) name allows businesses to operate under a different name, enhancing branding flexibility and privacy. It is essential for opening business accounts, expanding services, and improving public perception without creating a separate legal entity.
How Can You Place a Vending Machine at a Location

How Can You Place a Vending Machine at a Location?

Learn the strategies for securing profitable vending machine locations and key factors to maximize your vending business's success. Discover top site recommendations, legal steps, and tips for approaching property managers effectively.
What Is the Legal Definition of Estoppel

What Is the Legal Definition of Estoppel?

Estoppel prevents a party from contradicting prior statements or actions, ensuring fairness and consistency in legal agreements. Common types include promissory estoppel, equitable estoppel, and estoppel by deed, addressing various legal scenarios effectively.
What Does Business Acumen Mean

What Does Business Acumen Mean

Business acumen involves strategic thinking, decision-making, and understanding organizational dynamics to impact goals effectively. Essential skills include financial insight, stakeholder awareness, and navigating uncertainty for leadership at all levels.

Contact our attorney.

Please tell us your story:

3 + 1 = ?