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What Are Non-Economic Damages In A Personal Injury Claim?

When processing through the often complex world of personal injury claims, understanding the various types of damages is important.

One significant category is non-economic damages, which go beyond the tangible costs and look into the emotional and subjective impact of an injury.

In this comprehensive guide, we will explore the factors influencing non-economic damages in New Jersey, the types of non-economic damages, how to calculate and prove them, the recovery process, and the approach to challenge awards. 

Moreover, we’ll shed light on the role of personal injury lawyers and address common questions about evidence requirements and taxation of non-economic damages.

What are Non-Economic Damages in a Personal Injury Claim?

Factors that Affect Non-Economic Damages in NJ

Non-economic damages, often labeled as “general damages,” involve the intangible losses a person experiences due to an injury.

Understanding the factors influencing the calculation of these damages is vital:

Severity of Injury 

The more severe the injury, the higher the potential non-economic damages. This includes both physical and emotional impacts.

For instance, a minor bruise may lead to nominal compensation, while a weakened spinal injury causing long-term pain and emotional distress could result in significantly higher non-economic damages.

Duration of Recovery 

The time it takes for a full recovery contributes to the assessment of non-economic damages. Prolonged suffering often leads to higher compensation.

For example, a person recovering from a minor fracture may receive lower non-economic damages compared to someone dealing with a chronic condition that requires ongoing medical attention and impacts their daily life for an extended period.

Impact on Daily Life 

If the injury significantly slows down the victim’s ability to lead a normal life, this factor is considered when determining non-economic damages.

Consider a scenario where an avid hiker sustains a leg injury, significantly limiting their mobility and preventing them from engaging in the outdoor activities they once enjoyed.

In such a case, the impact on daily life becomes a key consideration in calculating non-economic damages.

Disfigurement or Scarring 

Visible scars or disfigurement resulting from the injury can have a profound impact on non-economic damages.

For instance, severe facial scarring from a car accident can lead to higher non-economic damages due to the lasting impact on the individual’s appearance and psychological state.

What are the Types of Non-Economic Damages?

Non-economic damages encompass a wide range of intangible losses. In New Jersey, the following types are commonly considered:

Emotional Distress 

Damages for emotional distress account for the psychological impact of an injury, including anxiety, depression, or sleep disturbances.

For instance, if an employee at a local New Jersey workplace experiences significant emotional distress due to a workplace accident, this could lead to compensation for emotional distress.

Comparative Negligence 

New Jersey follows a comparative negligence system, where non-economic damages may be adjusted based on the percentage of fault assigned to the injured party. Understanding this system is vital for accurate compensation calculations.

Case Precedents 

Lawyers often refer to past cases and settlements to establish reasonable guidelines for non-economic damages in similar situations.

Effective negotiation is key to securing fair compensation for non-economic damages. Lawyers use their expertise to present a compelling case and maximize the recovery for their clients.

How to Calculate and Prove Non-Economic Damages in NJ

Calculating non-economic damages involves a subjective evaluation, and proving them requires a strategic approach:

  1. Documentation: Comprehensive medical records, expert testimonies, and even personal diaries detailing the emotional impact can strengthen the case.
  2. Expert Opinions: Expert witnesses, such as psychologists or medical professionals, can provide valuable insights into the emotional and psychological impact of the injury.
  3. Comparative Analysis: Attorneys often use comparable cases and settlements to establish reasonable guidelines for non-economic damages.
  4. Consistency in Testimonies: Consistent and credible testimonies from the victim, family, and friends help establish the extent of non-economic damages.

Recovery and Compensation for Non-Economic Damages

Recovering non-economic damages involves a detailed legal process:

Attorneys initiate negotiations with the insurance representatives of the party at fault. This initial step aims to secure a fair settlement that takes into account both economic and non-economic damages. Negotiations require legal expertise and a thorough understanding of the specific case’s complexity.

If negotiations and alternative dispute resolution methods prove ineffective or if there is a significant dispute regarding compensation, the case proceeds to trial. This is the final resort in pursuing fair compensation for non-economic damages.

During the trial, both parties present evidence, including medical records, expert testimonies, and other relevant documentation. A judge or jury then carefully evaluates this evidence to determine the appropriate compensation for non-economic damages.

How Can I Challenge the Non-Economic Damages Awarded in New Jersey?

Challenging a non-economic damages award involves a careful analysis of the case:

  1. Legal Errors: If there are legal errors in the proceedings or the application of the law, it can be grounds for challenging the award.
  2. Excessive or Inadequate Award: If the awarded amount is unbalanced to the facts of the case, it may be challenged based on excessiveness or inadequacy.
  3. New Evidence: Discovering new evidence that was not available during the initial proceedings can be grounds for challenging the awarded damages.

See also: Jersey City Personal Injury Lawyer

Contact with Personal Injury Lawyer in New Jersey

Given the complexities of personal injury claims, seeking legal guidance is important. Contact an experienced attorney, like the experts at Rosengard Law Group, who can be your compass. They bring legal expertise to untangle complexities and evaluate your case. 

Their dedicated team assesses your situation, provides valuable insights, and guides you through the process, ensuring you process the complex world of non-economic damages with confidence. 


What evidence is required to prove non-economic damages in a personal injury claim?

Evidence may include medical records indicating the severity of physical injuries, expert testimonies from psychologists or therapists, and personal diaries documenting emotional distress.

Examples of non-economic damages in a personal injury case?

Examples include pain and suffering, emotional distress, loss of enjoyment of life, and compensation for disfigurement or scarring.

How are non-economic damages taxed in New Jersey?

Non-economic damages in personal injury cases are generally not subject to federal income tax. However, it’s advisable to consult with a tax professional for the latest information.


Understanding non-economic damages is important when handling the complexities of personal injury claims in New Jersey.

From the factors influencing their calculation to the types of damages and the complex process of proving and challenging them, this guide aims to provide a comprehensive overview. 

Seeking legal counsel and being well-informed can significantly enhance your chances of fair compensation, ensuring that both economic and non-economic losses are adequately addressed in the pursuit of justice.

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