Economic vs. Non-Economic Damages Explained
An injury can flip your life in a day, affecting your health, your income, and even your peace of mind. After a crash or fall, the next big question is usually simple: How are losses paid for? At the Law Office of Shane R. Kadlec, we have helped injured people in Houston and nearby communities since 1996, and we know these questions well.
Our goal here is plain: give you a clear picture of economic damages, non-economic damages, and how both work in a personal injury case. Shane Kadlec meets clients one-on-one to learn how the injury changed daily life, then builds claims that reflect the full story. Free consultations are available if you want to talk through your situation and your options.
Economic Damages: Tangible Financial Losses
Economic damages pay you back for measurable money losses tied to the injury. These numbers usually come from bills, statements, or wage records, so they are often simpler to document and total up. Think of them as the dollars you had to spend or lost because of the incident.
Examples of Economic Damages
Below are common categories we see in Texas injury cases, each supported by paperwork and records.
- Medical Expenses: Initial ER and hospital care, follow-up visits, surgery, rehab and physical therapy, medications, imaging, and medical equipment like braces or wheelchairs.
- Lost Wages: Pay you missed while recovering, including hourly wages, salary, overtime, bonuses, commissions, and lost tips when applicable.
- Reduced Earning Capacity: Income loss in the future when injuries limit the kind of work you can do, the hours you can handle, or the pay you can earn.
- Property Damage: Cost to repair or replace your car, motorcycle, bike, phone, or other items damaged in the accident.
- Out-of-Pocket Expenses: Travel to medical appointments, parking, childcare during treatments, and home changes like ramps or handrails.
- Rehabilitation Costs: Physical therapy, occupational therapy, vocational training, or assistive technology that helps you return to daily life.
- Funeral Expenses: In a wrongful death case, costs for services, burial or cremation, and related fees.
To give these claims weight, save every bill and receipt. Keep pay stubs, W-2s, tax returns, and a simple log of missed work days or reduced hours; this evidence makes a real difference.
Non-Economic Damages: Intangible Losses
Non-economic damages address the human side of an injury; losses without a price tag printed on them. These harms are real but subjective, and they do not come with receipts. Juries and adjusters look at the facts and the severity of the case to value them.
Examples of Non-Economic Damages
These categories capture how an injury affects daily life, relationships, and dignity.
- Pain and Suffering: Physical pain during recovery and the discomfort that lingers afterward.
- Emotional Distress: Anxiety, depression, sleep problems, or PTSD linked to the crash or trauma.
- Loss of Enjoyment of Life: Being kept from hobbies, sports, travel, or social activities you loved.
- Loss of Consortium: Harm to a marriage or intimate relationship, including loss of companionship and affection.
- Disfigurement or Physical Impairment: Scarring, amputation, or limits to movement or strength that affect confidence and independence.
There is no set formula for non-economic damages. The value usually reflects the seriousness of the injury, how long symptoms last, and how your life has changed day to day.
Availability of Economic and Non-Economic Damages
Most personal injury cases allow both types of damages, as long as you can prove them. Paperwork helps with the money losses, and your own words, along with medical notes and witness statements, help show the human side. Both matter.
Save all bills, pharmacy receipts, mileage records, and proof of lost income. For the intangible losses, keep a simple journal about pain levels, sleep, mood, and activities you had to skip because those details help tell your story.
To make the process concrete, here is a quick look at documents that support different categories of damages:
| Category | What Helps Prove It | Tips |
| Medical Expenses | Hospital bills, EOBs, invoices, prescriptions | Request itemized bills and keep every receipt |
| Lost Wages | Pay stubs, employer letter, timesheets, tax returns | Track missed days and reduced hours in a simple log |
| Reduced Earning Capacity | Doctor opinions, vocational reports, earnings history | Document job limits and failed return-to-work attempts |
| Property Damage | Repair estimates, photos, receipts, vehicle valuation | Photograph damage from multiple angles |
| Out-of-Pocket Costs | Receipts for travel, parking, childcare, home changes | Keep a folder or digital file and update weekly |
| Pain and Suffering | Pain journal, treatment notes, family statements | Note pain levels and limits on daily tasks |
| Emotional Distress | Counseling records, diagnoses, medication history | Do not skip therapy, as gaps weaken claims |
| Loss of Enjoyment | Before-and-after activity lists, photos, coach letters | Be specific about activities and dates missed |
| Loss of Consortium | Spouse statement, counseling notes | Describe changes in support, affection, and roles |
| Disfigurement or Impairment | Photos over time, surgical records, rehab notes | Show progression and lasting effects |
If you are unsure what to keep, hold on to it anyway. We can sort it out and decide what strengthens your claim.
Comparative Negligence and Damage Reduction
Sometimes, fault is shared. If your actions played a part in the accident, your compensation can be reduced by your share of responsibility. In Texas, you cannot recover if your share is more than half, and that issue can be hotly contested by insurers.
Punitive Damages: When Are They Awarded?
Punitive damages do not pay you back for a loss; they punish a defendant for extreme behavior like willful misconduct or fraud. Courts use them sparingly and only when the proof is strong. They also serve as a warning to others who might try the same reckless behavior.
The Claims Process: Seeking Compensation
Getting a fair result starts with an investigation. An attorney can pull records, talk with witnesses, gather video, and work with doctors or vocational pros to show the full scope of your losses. Insurers often call early with a quick number that sounds fine for now, but it usually falls short once the full picture comes into view.
If a fair settlement is possible, we aim to secure it without delay. If talks stall, a lawsuit keeps your claim moving and preserves deadlines.
- Free consultation and case review: We listen, answer questions, and outline next steps.
- Investigation: Collect crash reports, photos, medical records, wage proof, and witness statements.
- Demand package: Present liability, medical evidence, and damages with a clear settlement number.
- Negotiation: Respond to the insurer’s offers, push for a number that fits the evidence.
- Filing suit if needed: Draft the complaint, move through discovery, and prepare for mediation or trial.
- Resolution: Settle or try the case, then handle liens and disbursement.
You do not have to handle calls, forms, and deadlines on your own. We take that weight off your shoulders so you can focus on healing.
Contact the Law Office of Shane R. Kadlec for Assistance
If you want straight answers about economic and non-economic damages, we are ready to help. Call 281-643-2000 or reach us through our website to set up a free consultation. Since 1996, Shane Kadlec has worked with accident victims across Houston and nearby communities, and our team fights for fair results in every case.
We welcome your questions and your story. Bring your bills, photos, and any letters from insurers, and we will walk you through your options. If you need support with doctors or scheduling, we can help with that, too, so you can focus on getting better.
