How are non-economic damages, like pain and suffering, calculated for a settlement in California?

There is no rigid formula for calculating non-economic damages; they are determined through negotiation based on the severity and impact of the injury, supported by strong evidence. Here are the common steps attorneys and insurance companies use to arrive at a settlement figure: Step 1: Calculate Your Economic Damages First, calculate your total economic damages, which are your concrete financial losses. Collect all medical bills (past and future), receipts for out-of-pocket expenses, and documentation of all lost wages. This total serves as the foundation for the non-economic damage calculation. Step 2: Document Your Suffering Gather all evidence that demonstrates the severity of your physical pain, mental suffering, and emotional distress. This includes photographs of your injuries over time, a personal journal detailing your daily pain levels and limitations, and written statements from family or friends describing the impact on your life. Step 3: Apply the "Multiplier" Method As a starting point for negotiation, insurance adjusters and attorneys often apply a multiplier to your total economic damages from Step 1. This multiplier typically ranges from 1.5 for minor injuries to 5 or more for severe, permanent injuries. The stronger your evidence from Step 2, the higher the multiplier you can justify. Step 4: Consider the "Per Diem" Method Alternatively, calculate a reasonable daily value for your suffering (a "per diem" amount) and multiply it by the number of days you experienced significant pain. This method provides another benchmark figure to use in negotiations and can be compared to the result from the multiplier method. Step 5: Adjust for Key Factors and Send a Demand The initial calculation is adjusted based on factors like the egregiousness of the defendant's actions, the sympathy you might evoke from a jury, and any shared fault. Your attorney will then package this information into a comprehensive settlement demand letter to the at-fault party's insurance company. Important details and nuances: These methods are tools for negotiation, not legal requirements. A jury does not use a multiplier; they are instructed to award a fair and reasonable amount based on the evidence. The final settlement amount is the product of negotiation between your attorney and the insurance adjuster. Warnings and limitations: California law limits non-economic damages in specific cases. Under MICRA (Civil Code §3333.2), non-economic damages in medical malpractice cases are capped. Additionally, under Proposition 213 (Civil Code §3333.4), you may be barred from recovering non-economic damages if you were an uninsured driver, a drunk driver, or the owner of an uninsured vehicle involved in the accident. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney to understand the true value of your claim and navigate the settlement process.