Glossary

Economic damages

The measurable financial losses from an injury — medical bills, lost wages, and other out-of-pocket costs.

Economic damages are the losses that come with receipts. Medical treatment already received, treatment reasonably projected, wages actually lost, and property damage all belong here. Both published methods of valuing a claim start from this figure. The multiplier method multiplies it; the per-diem method sits alongside it. That makes economic damages the number every other number in a settlement estimate depends on, and the reason itemised bills matter more than account statements — a statement shows a balance, an itemised bill shows what was charged and for what. Lost earning capacity is a distinct claim from lost wages and is normally established by an economist rather than by a formula.

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