Caps on Damages and Their Implications for Victims’ Compensation

How Can Damage Caps Alter the Recoverable Compensation for a Personal Injury Claim?

While nothing can undo the harm caused by an accident and the related injuries, many victims and their loved ones seek financial compensation through personal injury litigation to help them get a measure of justice and recoup damages for the losses they experienced. The value of the negotiated or litigated settlement award is the result of complex calculations based on a wide variety of factors specific to each case. These awards may be substantial, particularly in cases involving severe injuries or long-term disabilities. However, North Carolina does place statutory caps on certain types of damages, which may significantly impact the total compensation a victim can recover. It’s important to discuss your case with an experienced personal injury attorney to determine how these caps could affect the outcome of your claim.

Are Economic Damages Subject to Caps in North Carolina?

North Carolina law does not impose any caps on economic damages in personal injury cases. Plaintiffs can seek full compensation for their actual monetary losses, regardless of the amount. Recoverable economic damages typically include medical expenses, lost wages, loss of future earnings, and other quantifiable out-of-pocket costs related to the injury. The absence of caps on economic damages allows victims to recover the full extent of their financial losses.

However, working closely with a trusted personal injury lawyer is crucial to ensure you are correctly calculating the full extent of your economic damages. Sometimes, it may be necessary to wait until you have reached the point of maximum medical improvement (MMI) to accurately determine your ongoing care and treatment needs. MMI is reached when your doctor believes your condition has reached a plateau where further healing or improvement is unlikely, and care switches from curative treatments to maintenance. At this time, you may be evaluated for disability ratings or permanent impairments.

Are There Limitations on Non-Economic Damages?

While economic damages are essential to helping victims and their families regain financial stability after an accident, they often do not account for the full scope of the harm caused by the incident. Non-economic damages encompass intangible losses experienced by victims, such as pain and suffering, emotional distress, loss of enjoyment of life, and loss of consortium. There are no caps on non-economic damages for most personal injury claims in North Carolina; however, cases involving medical malpractice are a crucial exception to this rule.

In cases that don’t deal with medical malpractice, juries have complete discretion to award the non-economic compensation they believe is appropriate based on the case’s details. The lack of caps on non-economic damages in many types of personal injury lawsuits can potentially result in substantial awards for victims who have experienced severe pain or a drastic reduction in their quality of life. Defendants and their legal teams are also aware of the possibility of high-value verdicts, and this knowledge may impact their willingness to settle claims before the case heads to trial.

Why Are Medical Malpractice Cases Handled Differently Than Most Other Personal Injury Claims?

Medical malpractice cases represent an important exception to the general rule on non-economic damage awards. North Carolina General Statute § 90-21.19 was enacted in 2011 and set a cap of $500,000 on compensation for non-economic damages in medical malpractice lawsuits. The limitation was imposed as part of tort reform efforts aimed at preventing frivolous lawsuits against healthcare professionals. The cap is recalculated every three years to account for inflation. It was last adjusted in 2023 and is currently set at $656,730 until 2026.

For medical malpractice lawsuits that are tried by a jury, the court, attorneys, and witnesses cannot inform the jury members of the limitation on non-economic damages. The jury must determine an appropriate award based on the facts of the case. If the amount awarded exceeds the limits set by law, the court will modify the judgment to meet the legal cap.

However, it’s worth noting that this cap does not apply to economic damages in medical malpractice cases. Victims are always eligible to recover the full value of their financial expenditures and losses related to their injuries, such as costs for surgeries and therapy, the amount of their lost income during their recovery, and consideration for the future wages they may be unable to make due to a disabling injury. Unfortunately, the cap may be particularly limiting in cases where the victim has suffered severe emotional trauma or major impacts on their quality of life but has relatively low economic damages.

When Might the Medical Malpractice Damages Cap Not Apply?

Sometimes, the harm done by an act of medical malpractice is so extreme that it causes serious, lasting damage to the victim or even results in their untimely death. In recognition of the tragic injustices caused by these negligent acts, North Carolina law allows exceptions to the medical malpractice cap in cases that meet strict statutory criteria. To be exempt from the limitation on damages, the plaintiff must demonstrate the following:

• The injured individual died or suffered permanent or catastrophic injuries, such as disfigurement or the loss of a limb
• The actions of the defendant which led to the injuries were intentional, reckless, grossly negligent, malicious, or fraudulent

What Caps Are Placed on Punitive Damages?

Punitive damages are monetary awards imposed on defendants in personal injury cases that go beyond compensating the plaintiff for actual losses. The purpose of punitive damages is twofold: to deter the defendant and others from engaging in similar harmful behavior in the future and to express society’s disapproval of such conduct by imposing a form of civil punishment. Punitive damages are relatively rare in North Carolina personal injury cases and are only awarded in instances of willful or wanton misconduct, malice, or fraud.

North Carolina law places strict limitations on punitive damages in personal injury cases. Punitive damages are capped at the greater of $250,000 or three times the amount of compensatory damages awarded. This cap applies to all personal injury cases, including those involving drunk driving, which are sometimes exempted from other states’ cap rules.

How Can Our Attorneys Help You Navigate North Carolina’s Legal System?

Recovering fair and just compensation from the responsible parties following an injury can be crucial for your physical, financial, and mental well-being. It’s essential to understand how the state’s caps and limitations on damages may impact negotiations, legal strategies, and the overall compensation available to you. Damage caps and limitations are a complex and sometimes controversial topic and are subject to change through legislative action or court decisions. As public opinion and legal precedents evolve, there may be future modifications to these limitations, so it is recommended to speak to a knowledgeable attorney for the most up-to-date information on how these laws could affect your case.

Our skilled attorneys at Brent Adams & Associates can thoroughly evaluate your claim and build a tailored plan to help you recover the maximum damages you are entitled to. To learn how our compassionate team can serve you, contact our office today at 910-249-6891 and schedule your free consultation.