How to Calculate Economic Damages in Oregon

People who suffer injuries in an accident might have the right to receive economic damages for their losses. Economic damages describe the financial losses you experience as a result of being involved in an accident. Economic damages cover financial losses such as medical bills, lost wages, and property damage.

Unlike some states that limit compensation, there are no caps on economic damages claims in Oregon. That means you can recover the full amount of your financial losses. Read on to find out how the value of economic damages is calculated in Oregon.

What Are Economic Damages?

Economic damages refer to financial losses you incur as a result of an accident. They may include things like property damage, medical bills, out-of-pocket expenses, and lost wages. These damages make up a large portion of most personal injury or wrongful death claims. 

Unlike non-economic damages, they are quite easy to calculate. They’re also relatively easy to prove, usually with documentation such as receipts, bills, and pay stubs.

Who Calculates Economic Damages in a Personal Injury Case

Economic damages in a personal injury case are typically calculated by experts such as:

1. Attorneys: A personal injury lawyer can help calculate the value of your economic damages. They will gather evidence and work with other experts to ensure you get accurate calculations.
2. Economists: Sometimes, economists may be involved in the calculation of economic damages. They help analyze inflation and wage growth rates to determine future losses, such as lost earning potential and long-term medical care.
3. Insurance adjusters: Insurance adjusters also perform their own calculations to determine the amount they will pay for your losses. They review your employment history, medical losses, and other documents to come up with a settlement amount for your losses.

The Process of Calculating Economic Damages

Collect the Documents You Need to Calculate Damages for Lost Wages

The first step in calculating the value of lost wages is reviewing your earnings and benefits to determine how much you would have earned had the injury not occurred. Your attorney or insurance adjuster will review your pay statements, offer letters, employee handbook, and tax returns to verify your past earnings and benefits.

Determine Your Earnings and Benefits Before Your Injury

Next, they will use your historical earnings to determine the value of your earnings and benefits had the accident not occurred. Depending on the pattern of your past earnings, your future earning capacity may be calculated as a straight average, inflation-adjusted average, or according to your last full-year earnings.

There are situations where historical earnings provide an inaccurate measurement of your actual earning potential. Your past earnings are an unreliable indicator of future earning capacity if you are still underage or have only just begun working after completing your education. The insurance adjusters will determine your average earnings based on what others in your industry, occupation, or educational background typically earn.

Determine Your Earnings and Benefits After Being Injured

The next step is to determine your post-injury earnings: the compensation and benefits you have received since being injured and what you will likely earn in the future. To determine your earnings after the injury, your attorney or insurance adjuster will look at your pay statements, tax documents, and your salary account.

Your future earning prospects may or may not be affected by your injuries. For instance, if you have fully recovered and returned to work, your future earning capacity will obviously not be affected. 

However, if your injuries have prevented you from working or if you have returned to work but can’t perform the same duties as before, then your earning capacity is greatly affected. As such, you may be entitled to collect damages for future lost earnings.

Determine the Growth Rate of Your Future Earnings

Once your earnings and benefits after being injured are determined, the next step is to determine the growth rate of your future earnings. The longer you work, the more you earn. Therefore, your attorney or insurance adjuster should consider these increases when calculating your future loss of income.

That said, the best way to determine your future earnings is by looking at historical increases of all workers within your particular occupation, industry, or occupation level. This information can be found in the Bureau of Labor Statistics.

Calculating Medical Expenses

Medical expenses make up a huge portion of economic damages in personal injury claims. To calculate your medical expenses, your attorney or insurance adjuster will gather medical bills for:

1. Hospital stays
2. Doctor visits
3. Surgery and medical treatments
4. Physical therapy
5. Prescription medications
6. Assistive devices (like wheelchairs or crutches)

Calculating Property Damage

Just like medical expenses, calculating the value of property damaged in an accident is very straightforward. All you need to do is gather bills for these items:

1. Repair estimates or invoices, such as for vehicle damage
2. Replacement cost receipts for destroyed items
3. Appraisal reports for high-value items

Get Compensated Rightfully

Unlike non-economic damages, economic damages are very easy to calculate. All you need to do is gather the right documentation to prove your lost wages, medical bills, and property damage as a result of the accident. 

If you’re unsure about the process, consult an experienced attorney to help you navigate your claims process and receive the best possible compensation.