Compensatory Damages in Arizona Personal Injury Cases

If you suffer an injury or harm on someone else’s property or due to someone else’s actions – whether intentional or negligent – you may wonder if you’re entitled to any form of compensation for your losses. In Arizona, you may be able to receive compensatory damages for a personal injury case, but the amount will depend on things like injury severity, damages, and the strength of your case. Below, we review everything you need to know about Arizona compensatory damages in personal injury cases, including what you can do to maximize your compensation.

How Much Do Most Personal Injury Cases Settle for in Arizona?

In Arizona, most personal injury cases settle for about $3,000 to $75,000. At Thompson Law, we’ve won upwards of millions of dollars in individual personal injury cases for dozens of our clients.

However, it’s not entirely fair to say there’s a “typical” amount for a personal injury settlement. All cases have unique circumstances. This is part of why these types of cases tend to settle; going to trial can be expensive, time-consuming, and risky.

Factors That Influence Settlement Amounts

There are many factors that can impact settlement amounts for personal injury cases in Arizona, including:

• Injury severity
• Medical costs
• Lost wages
• Your percentage of liability
• Insurance policy coverage
• The strength of the evidence you present

What Is the Average Settlement for Pain and Suffering in Arizona?

Settlement amounts for pain and suffering typically range between $5,000 and $80,000 in Arizona. However, some cases might have settlements exceeding $100,000 or more, especially in cases when severe injuries or significant damages are involved.

In Arizona, pain and suffering are considered non-economic damages. Unlike economic damages, such as calculable medical bills, these damages are inherently subjective and not easily quantifiable. There are two main methods used to estimate the monetary value of these damages:

• Multiplier Method. This approach involves multiplying total economic damages by a factor that typically ranges between 1.5 and 5. The multiplier is meant to reflect the severity and long-term impact of the injuries in question.
• Per Diem Method. This approach assigns a daily monetary value to the plaintiff’s pain and suffering. It then multiples this value by the number of days the individual is expected to experience these effects. This method is most often used when the duration of an individual’s pain and suffering is shorter or more predictable.

Another thing to note is that Arizona does not impose caps on damages for pain and suffering. Given the complexities of navigating these types of damages, it’s wise to consult an attorney to review your case sooner rather than later.

Which Compensation Can You Get in an Arizona Personal Injury Case?

You may be entitled to compensation in the form of different types of damages, both economic and non-economic, in a personal injury case. Let’s take a closer look at each category and some of its examples.

Economic Damages (Special Damages)

These are quantifiable damages that reflect direct financial losses related to the accident. Their goal is to help the victim return to the financial position they were in prior to the incident.

Examples of economic damages in personal injury cases include:

• Medical expenses
• Lost wages
• Diminished future earning potential
• Cost of ongoing rehabilitation or therapy
• Out-of-pocket expenses, such as transportation to medical appointments
• Costs for assistive devices, such as wheelchairs or prosthetics
• Childcare or household help required due to the injury

Non-Economic Damages

These are intangible losses that aim to compensate victims for everything else they may have lost after experiencing a serious injury. These damages seek to help victims get as close to the position they were in before the accident as possible.

Some common examples of non-economic damages that might apply in a personal injury case include:

• Emotional distress
• Loss of companionship
• Diminished quality of life

Punitive Damages

Punitive damages aren’t directly related to the plaintiff’s losses. Instead, they’re meant to punish the defendant for their actions and discourage similar behavior in the future. These damages are rarely used in personal injury cases and are typically reserved for particularly egregious or malicious acts.

Types of Personal Injury Cases

A personal injury claim can be filed when a party is injured or harmed by another party’s actions or negligence or on another party’s property. Some examples of common personal injury scenarios that may be eligible for compensation include:

• Car accidents
• Slip and fall cases
• Medical malpractice
• Product liability cases
• Workplace injuries
• Dog bites
• Assaults

How to Recover Compensatory Damages

If you’ve been involved in an accident or incident that you think may make you eligible for compensatory damages, follow these basic steps to take action:

1. Seek medical attention. First things first: prioritize your health. Take care of and document all injuries thoroughly.
2. Document all evidence. Start gathering evidence like photos, police reports, medical records, and witness records as soon as possible.
3. Notify your insurance company. Inform the at-fault party’s insurer about your personal injury claim promptly.
4. Consult an attorney. Reach out to a personal injury attorney to assess your case and guide you through the rest of the process.
5. Submit a demand letter. Draft and submit a detailed letter to the insurer that outlines your damages and requests compensation (or have your attorney do so on your behalf).
6. Negotiate as needed. Engage in settlement discussions with the insurer (or have your attorney do so on your behalf).
7. File a lawsuit as needed. If negotiations don’t work out, file a personal injury lawsuit. Your attorney can guide you through this stage of the process.

After you file a lawsuit, you may have the opportunity to attempt mediation to resolve the case before it goes to trial. Mediation is an informal process for the parties to resolve their dispute amicably without going to trial. Parties can exchange evidence and come to a settlement, or the case can proceed to trial, where a judge or jury determines liability and awards damages accordingly.

How Insurance Companies Handle Compensatory Damages

Insurance companies handle compensatory damage claims by assessing a few things:

• Liability
• Injury severity
• Medical expenses
• Lost wages
• Other damages, like property damage, as needed

They use algorithms and adjusters to determine a settlement offer, which is usually low to begin with. To minimize payouts, insurance companies may try to:

• Dispute liability
• Downplay the severity of injuries
• Delay claim processing to slow things down
• Pressure claimants to accept quick, low offers
• Misinterpret policy language
• Question the necessity of medical treatments

All of these tactics demonstrate why having the guidance of an attorney can be so important. An attorney can help you counter these strategies, build a strong case, and negotiate aggressively. They can also handle communications with insurance providers for you to protect you from unintentionally harming your own case.

Basic Things to Consider Before Suing

Before you move forward with a potential personal injury lawsuit, there are a few important details to keep in mind.

Deadline to Sue: Statute of Limitations

The statute of limitations for filing a personal injury claim in Arizona is two years from the date of injury. This includes cases involving medical malpractice as long as the patient is reasonably aware of the harm that has affected them. You’ll need to file your lawsuit within this deadline, or your case may be dismissed.

There are some exceptions to the statute of limitations, though, including cases involving:

• Minors. If the injured party is under 18 at the time of injury, the clock starts on their 18th birthday.
• Government Entities. All claims against government entities require a formal notice within 180 days and filing within one year.
• Discovery Rule. If the injury is not immediately apparent, the clock does not start until the injury is discovered or reasonably should have been discovered.

Determining Responsibility: Who to Sue

Identifying who’s responsible in a personal injury case may seem simple, but it can actually be quite complicated. Multiple parties – individuals, companies, or public agencies – may share liability or could be individually responsible. Your attorney can help you determine who to sue in a personal injury case.

Legal Causes of Action

Some common legal causes of action that establish that a defendant may be liable for damages include:

• Negligence. This refers to the defendant’s failure to exercise reasonable care. Proving negligence involves establishing that the defendant had a duty of care to the plaintiff, breached that duty and that there is causation between the breach and the damages in question. The plaintiff will also need to establish their damages.
• Strict Liability. This holds parties responsible for the harm they cause, regardless of intent or negligence. This typically applies in cases involving defective products or dangerous activities.
• Intentional Torts. These involve deliberate actions that cause harm, like assault, battery, or fraud.

What Happens if You Were Partially at Fault?

Arizona uses a pure comparative negligence rule to determine fault in cases where the plaintiff shares some of the responsibility for the accident. This system allows plaintiffs to recover damages even when they are partially at fault. However, their compensation is reduced by their percentage of fault.

Let’s consider an example to see how this system can affect damages:

Imagine a customer walks through a grocery store aisle and notices a “Wet Floor” sign but chooses to walk through the area instead of taking a safer route. The floor is indeed wet and slippery due to a spill that the store failed to clean promptly. The customer slips and injures their back.

During a lawsuit, the store may be found 70% at fault for failing to address the hazard quickly. Meanwhile, the plaintiff may be found to be 30% at fault for ignoring the warning sign.

If the total damages were determined to be $20,000, then the plaintiff’s compensation is reduced by 30%, leaving them with $14,000.

Do I Have to Pay Taxes on a Personal Injury Settlement in Arizona?

Some types of compensation from personal injury settlements are taxable in Arizona, including compensation for:

• Lost wages
• Emotional distress unrelated to physical injury
• Punitive damages

In contrast, compensation for medical expenses and pain and suffering that can be tied to physical injuries is non-taxable.

Contact Thompson Law Today

When you suffer an injury due to another party’s actions or negligence, you deserve an advocate who will fight to protect your rights and help you maximize your compensation. Thompson Law has earned billions in damages for our clients in cases involving personal injuries.

Don’t wait to consult a personal injury attorney – acting quickly can help you preserve evidence and build a case that gets you the money you deserve. Reach out to us today to receive a free consultation.