Cash damage is a major way end up a dispute. Generally the cost is carried out by the defendant’s insurance company. But before getting deeper into that first you must know how damages are categorized for the cash penalty. This is as following:
- Economic Damage: Damages that make you pay literally. Like medical expenses, repair and maintenance, Economic damages are usually specific costs after an accident.
- Non-Economic Damages: These damages are not after accident costs. They are more like after accident consequences.They is covered with cash damages, but that cannot be calculated precisely.Physical or mental injuries are considered as the Non-Economic Damages.
Suppose Brian had a car accident. He got some minor bruises but he hurt his elbow pretty badly. So he had to may around $200 medical expenses. So first the non-economic damages are caused by that accident. After that he faces economic damage which was $200. In a brief, both are attached to one another. Just like injury and an injury attorney.
But what may happen if someone claims millions of dollars for accident? This is happening every day. It is not unlikely to face that much of damages from an accident. But that amount can hurt the financial condition of the defendant or defendant’s insurance company pretty badly. Not only that, it may even lead to more un-necessary expenses.
So what does the accident law has to say about that? Well to prevent such things from happening, a law is issued to limit the maximum amount of damage claim. And this law is described as Damage Cap.
Facts about Damage Cap:
- Every state has its own limit of damage cap.
- The main objective of damage cap is to maintain the costs of service providers such as insurance company.
- Juries don’t have jurisdiction over damage caps. They suggest a fair amount of damage penalty. Then it is modified according to damage caps later.
Usually it takes several juries to solve bigger cases. Accident cases generally require 7-9 juries to reach a decision. One of them will present the whole team. And when all juries reach their verdicts the presenter will let the judge know about their decision.
Accidents may leave you with mental scars. And you may face a lot of problems with affection, attraction, companionship, assistance, and sexual relations. So it is fair to pay the damage to make it up to the victim. But that doesn’t mean someone else have to get bankrupt because of it. Martin Luther King (Jr.) said that, “Injustice anywhere is a threat for justice everywhere”. And damage cap is a vital law to make that happen.