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Damage Caps Overview
Did you know Tennessee personal injury lawsuits are subject to damage caps?
If you have been injured because of someone else’s negligence, you may seek compensation of two types: economic damages and non-economic damages.
Economic damages are actual monetary amounts the injured party (or the injured party’s insurance company) has paid because of the incurred harm. Economic damages may include hospital bills, medical bills, the cost of medication and medical supplies, and transportation by ambulance. Lost wages or the loss of a promotion are factors that also could be considered economic damages.
Non-economic damages (sometimes called general damages) include more subjective forms of harm. If a plaintiff has incurred pain and suffering or disability, a judge or jury must decide the amount of monetary value to place on such losses. In Tennessee, non-economic damages cannot exceed $750,000.
The damage cap is $1 million if the plaintiff has suffered a limb amputation, severe burns, spinal cord injury causing paralysis or the death of a minor child’s parent.
In 2011, Tennessee also enacted a punitive damages cap. The state legislature approved a punitive damages cap of two times the compensatory damages or $500,000, whichever was greater. Exceptions would be permitted in cases of intentional misconduct, the destruction of records, or conduct committed while under the influence of alcohol or drugs.
Why Are Tennessee Personal Injury Lawsuits Subject to Damage Caps?
Back in 2011, Tennessee Gov. Bill Haslam signed a tort reform bill known as the Tennessee Civil Justice Act. He reasoned that if the monetary damages were limited, the state would be a more competitive environment in the business realm. He wanted to attract more business to Tennessee, and he saw tempering the threat of personal injury payouts as a yummy carrot to dangle in front of them.
Since then, at least one personal injury lawsuit has gone all the way to the 6thU.S. Circuit Court of Appeals where the punitive damages cap was deemed unconstitutional according to Tennessee’s state constitution according to the Daily Memphian.
That case regarded a lawsuit that resulted in $3 million in punitive damages that was awarded to a woman with minor children who had not been able to collect on her ex-husband’s life insurance for their children after he died. The federal court’s decision was particular to that case, though, and could still face appeal.
It’s hard to say whether or not damage caps have convinced new businesses to take up residency in Tennessee, but damage caps most certainly don’t help the victims of accidents who suffer injuries because of the negligence of others.
In order to obtain the maximum compensation for your personal injuries, you need to speak with an experienced attorney. We highly recommend the law office featured here whether you have been in a car accident, motorcycle accident, workplace accident, railroad accident or any other type of injurious situation.
With their history of successfully winning personal injury lawsuits in Tennessee, they can sift through the facts of your case and ensure you receive the maximum compensation for your injuries, pain and suffering and long-term outlook.
