You can receive two types of damages in a personal injury claim: compensatory and punitive. These damages serve contrasting purposes and are calculated differently.
At Sieben Polk Law Firm, our personal injury lawyers tailor legal counsel to the unique needs of individual clients. We have decades of experience protecting the rights of people in Minnesota and the Upper Midwest and extraordinary case results.
Compensatory vs. Punitive Damages
Understanding the differences between compensatory and punitive damages and how they apply to your personal injury claim can determine how much compensation you receive. The main difference between these types of damages, is that compensatory damages aim to compensate the plaintiff for loss, while punitive damages aim to punish the defendant for wrongdoing. An experienced Eagan personal injury lawyer can provide the information you need to make informed decisions. An attorney will also collect evidence on your behalf to prove claims and negotiate with insurance companies for a maximized settlement. If the insurance company is unwilling to settle for the compensation you deserve, a skilled lawyer will file a lawsuit to initiate court trial hearings.
Compensatory Damages Reimburse Actual Losses, While Punitive Damages Punish the Defendant
Compensatory damages reimburse you for all the losses you’ve suffered from an accident caused by someone else’s negligence. To do so, your attorney will investigate and gather evidence of your monetary expenses and the intangible ways the accident has affected you and your loved ones. Compensatory damages aim to bring your financial situation back to where you were before the accident.
On the other hand, punitive damages punish the defendant for egregiously negligent behavior. These actions go beyond mere negligence and involve malice, intention to harm, or a deliberate disregard for others’ safety.
The Magnitude of Injuries Determines Compensatory Damages, While Judges Determine Punitive Damages Amounts
A personal injury lawyer will evaluate your injuries and how they’ve affected your life to calculate the total compensatory damages you’re owed. Some factors include the severity of your injuries, days missed from work, property damage, mental trauma caused, and the inability to enjoy life activities such as hobbies. Most states do not limit the value of special damages you can receive, but many have caps on general damages.
In Minnesota, the following factors must be considered when determining whether to award punitive damages:
- The seriousness of the hazard to the public arising from the defendant’s misconduct,
- The profitability of the misconduct to the defendant,
- The duration of the misconduct and any concealment of it,
- The degree of the defendant’s awareness of the hazard and its excessiveness,
- The attitude and conduct of the defendant upon discovery of the misconduct,
- The number and level of employees involved in causing or concealing the misconduct,
- The defendant’s financial condition
- The total effect of other punishment likely to be imposed over the misconduct, including damage awards to others and the severity of any criminal penalties
Most states have a limit on the amount of punitive damages you can receive after a personal injury. However, Minnesota does not impose a cap on punitive damages, leaving it to the judge to review any award in light of the specified factors.
Compensatory Damages Are Awarded in Every Successful Claim, While Punitive Damages Are Rarely Awarded
Proving negligence for a personal injury claim requires proof of the losses suffered. Therefore, compensatory damages are awarded in all successful claims, with the specifics differing in each case.
Judges consider many qualifying factors when deciding whether to award punitive damages. Because these factors are associated with the defendant’s actions, cases that receive punitive damages are only a small percentage of the total personal injury claims filed.
Importance of Having Legal Representation
Sieben Polk P.A. is nationally recognized and locally rooted. Our skilled personal injury lawyers are committed to aggressively fighting for the rights of injured persons in Minnesota, North Dakota, and Wisconsin. We understand the legal terrain of the Upper Midwest areas, and we’re ready to pursue the types of damages your case deserves.
Contact us at 651-437-3148 for a free initial consultation. You don’t pay us unless we obtain compensation for your claim.
