Regarding personal injury
cases, when you file a claim against one person or organization, you usually
think that you will be offered some money to compensate your injury. There are
mainly two type of damages for which people get compensation. One is economic damage
that is specific costs that you spent for your medical bills or the money to
fix your damaged property.
The other type of damage is called non economic
damage. In non economic damage it includes all other damages that you faced
like emotional distress or social problems that you and your family faced.
Law makers put a limit on
this type of non economic damage. Because you cannot measure this damage with
money, so damage cap is used to put a limit. Until now, each state put its own
damage caps. The federal government has a $250,000 cap on non economic damages
for medical malpractice claims.
Why Damage Cap is implemented?
Sometimes, it may seem to
you that damage caps are not fair to the person who file a claim or the
plaintiffs. So, after the juries make a decision about the money why the amount
of money is changed later according to damage cap? Because there is a
relationship between high amount of fine and the cost to run the business.
Let me give an example.
Think about the cases of medical malpractice. There is devastating, sometimes
horrifying consequences occur in the life of a patient if there is any
negligence of doctor present. For this kind of cases, juries may give a large
amount of compensation for the non economic damages. So the doctor or the
medical malpractise insurance company have to pay this amount of money. So the
cost of medical insurance will go up as well as the cost of treatment. This
will affect the overall population. Everybody have to pay more for their
medical procedures. So to prevent this high cost of business the damage cap is
applied. Damage cap reduce the liability of the doctors as well as of other
professions thus maintain reasonable running cost for the business.
Damage cap also limits the
use of law to bring false claim against the professionals or organization. Some
people simply use it to earn a lot of money by false lawsuit. This damage cap
prevents this.
To learn more about damage cap please visit a
personal injury lawyer.
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