The Basic Formula
Settlement Value = Economic Damages + Noneconomic Damages - Comparative Fault Reduction
Step 1: Calculate Economic Damages
- Past medical expenses (all bills to date)
- Future medical expenses (projected treatment needs)
- Past lost wages
- Future lost earning capacity
- Property damage
- Out-of-pocket expenses (mileage, prescriptions, home modifications)
Step 2: Estimate Noneconomic Damages
Apply a multiplier to economic damages based on severity:
- Mild injuries: 1.5-2x multiplier
- Moderate injuries: 2-3x multiplier
- Severe/permanent injuries: 3-5x multiplier
Remember: noneconomic damages are capped at approximately $642,180 (can be increased to ~$1M with clear and convincing evidence).
Step 3: Adjust for Comparative Fault
Reduce the total by your fault percentage. If you're 20% at fault, your recovery is reduced by 20%. At 50%+ fault, you recover nothing.