Damage calculation, a critical component of any litigation involving personal injury, property damage, or other economic losses can have a significant impact on the financial well-being of the parties involved.
Unfortunately, there are several pitfalls that can lead to inaccurate damage calculations. These pitfalls can arise at any stage of the litigation process, from the initial investigation to the final trial.
Here are some of the most common damage calculation pitfalls and how to avoid them:
1. Failing to identify relevant damages
The first step in any damage calculation is to identify the applicable damages that have been incurred. This may include both direct damages, such as medical bills and lost wages, and indirect damages, such as pain and suffering and loss of enjoyment of life.
It is important to note that not all damages are compensable in litigation. Some damages, such as emotional distress, may only be recoverable in certain types of cases.
Failing to identify the relevant damages, may result in likely underestimating the value of damages that are entitled to be recovered.
2. Using the wrong valuation methods
Once the relevant damages have been identified, the next step is to choose the appropriate valuation methods for each type of damage. There are several different valuation methods available, and the best method to use will depend on the specific facts of the case.
For example, if calculating medical expenses, one may use the actual costs that have been incurred. However, if calculating lost wages, one may need to use a more complex valuation method that considers future earning potential.
Using the wrong valuation methods will likely overestimate or underestimate the value of damages entitled to be recovered.
3. Failing to account for relevant factors
When calculating damages, it is important to consider the relevant factors that may have affected the losses incurred. This may include factors such as inflation, interest rates, and the tax implications of any damages award.
Failing to account for the relevant factors may result in overestimating or underestimating the value of damages that are entitled to be recovered.
4. Failing to support the damage calculations with evidence
Once the value of the damages has been calculated, there need to be evidence supporting the calculations. This may include evidence such as, but not limited to medical bills, lost wage statements, and expert testimony.
Failing to support the damage calculations with evidence may result in the court not awarding the full amount of the calculated damages entitled to be recovered.
Conclusion
Damage calculation are complex issues. The best way to avoid damage calculation pitfalls is to work with experienced experts who specializes in litigation involving personal injury, property damage, or other economic losses. An experienced attorney working with an experienced damages calculation expert, will be able to identify the relevant damages, choose the appropriate valuation methods, account for the relevant factors, and support your damage calculations with evidence.