Damage Caps in Alabama Personal Injury Lawsuits (2024)

Damage Caps in Alabama Personal Injury Lawsuits (1)

Find out whether your damages will be reduced by statute

All states, including Alabama, have damage caps that limit the amount of damages a plaintiff can recover in certain cases.

You’ve probably heard about at least 1 massive personal injury award in the news recently.

Enjuris tip:Here are the top 10 personal injury settlements and judgments in 2020.

Although these awards are quickly reported by news outlets, they can be deceiving.

Most states have damage caps that limit the amount of damages a plaintiff can actually receive. If the jury awards an amount above the cap, the court will reduce the amount.

Alabama used to have several damage caps. However, almost all of the damage caps have been declared unconstitutional by the Alabama Supreme Court.

Moore v. Mobile Infirmary Association, Alabama Supreme Court (1991)

Barbara Moore entered Mobile Infirmary’s healthcare facility for treatment of lower back pain. Her physician prescribed periodic muscular injections of Sparine.

The following day, a nurse injected Sparine into Barbara’s right forearm (an improper location for such an injection). The injection caused an immediate "burning sensation," followed by a loss of feeling in portions of her right hand.

Two days later, Barbara suffered 3rd-degree burns to her finger while cooking. Because of the absence of sensation in her hand, she was unaware of the significance of the injury until the affected area became gangrenous. The gangrenous condition ultimately required amputation of her finger. Barbara is expected to experience permanent pain in other areas of her right hand and arm.

Barbara filed a medical malpractice lawsuit against Mobile Infirmary. She was awarded $600,000 in damages. However, because of a damage cap in place at the time, Barbara’s non-economic damages were reduced to $400,000.

Barbara appealed the case, arguing that the cap on non-economic damages was unconstitutional.

The Alabama Supreme Court ultimately held that the damage cap violated state constitutional provisions protecting the rights to trial by jury and equal protection of the law. The court also noted that the purported reason behind the damage caps (to help limit the rising cost of medical insurance) was flawed at best.

Because of Moore v. Mobile Infirmary Association, there are no longer non-economic damage caps in Alabama medical malpractice cases.

Types of personal injury damages available in Alabama

To understand damage caps, it helps to understand the 3 types of damages available in an Alabama personal injury case:

  • Economic damages (sometimes called “special damages”) are intended to compensate you for the objectively verifiable monetary losses that result from your injuries. Common examples of economic damages in Alabama include medical expenses, lost wages and property damages.
  • Non-economic damages (sometimes called “general damages”) are intended to compensate you for the subjective, non-monetary losses caused by your injury. Common examples of non-economic damages in Alabama include mental distress, physical pain and suffering, and loss of consortium.
  • Punitive damages are intended to punish the defendant for their actions and deter similar conduct in the future. In Alabama, punitive damages are only awarded in wrongful death cases and tort actions in which the defendant deliberately engaged in oppression, fraud, wantonness or malice.

Alabama’s damage caps

In most personal injury cases, damage caps aren’t applicable. Damage caps only become an issue in 2 types of cases:

  1. Wrongful death cases
  2. Cases in which punitive damages are sought

Let’s take a closer look at the damage caps for each type of case.

Wrongful death damage caps

A wrongful death lawsuit is an action brought against a defendant who caused a person’s death through recklessness or negligence.

The rationale behind a wrongful death lawsuit is that certain surviving family members of the deceased should be able to recover damages for the loss of their loved one.

Alabama is the only state in the country that completely denies recovery of compensatory damages (economic and non-economic damages) in wrongful death lawsuits. Only punitive damages are recoverable.

Punitive damage caps

Under Alabama Code 6-11-21, punitive damages in civil actions that do not involve physical injury must not exceed 3 times the amount of compensatory damages or $500,000, whichever is greater.

Let’s look at an example:

Bill was driving his Ferrari LaFerrari (a $1.4 million car) when he was rear-ended by a drunk driver.

Fortunately, Bill wasn't injured in the crash. However, the crash caused $200,000 worth of damage to his Ferrari LaFerrari.

The drunk driver was uninsured at the time of the crash, so Bill files a personal injury lawsuit against him.

After a 3-day trial, the jury awards Bill $200,000 in economic damages and $600,000 in punitive damages.

Pursuant to Alabama Code 6-11-21, the judge reduces the $600,000 punitive damage award to $500,000.

When it comes to civil actions that DO involve physical injury, punitive damage awards must not exceed 3 times the amount of compensatory damages or $1.5 million, whichever is greater.

The punitive damage caps discussed above do not apply to wrongful death cases or intentional infliction of physical injury cases.

Other ways your damages may be limited

Although damage caps are the most obvious way in which your damages may be limited, there are other factors that may limit the amount of damages you receive.

Alabama’s pure comparative fault rule

Alabama is one of only a handful of states that follow the pure comparative fault rule. This means that if a plaintiff is even 1 percent responsible for causing their injuries, they’re barred from recovering ANY damages.

Let’s look at an example:

Jason is driving his pickup truck east on Dauphin Street in Mobile, Alabama. It’s dusk, but Jason hasn’t turned on his headlights yet.

Samantha is headed south on Florida Street toward the intersection of Dauphin and Florida. Samantha is drunk, and she blows through the stoplight.

Samantha’s car collides with Jason’s truck.

Jason sues Samantha for $100,000.

After a 2-day trial, the jury finds that Samantha was 99 percent at fault for the crash (for drinking and driving), and Jason was 1 percent at fault (for driving at dusk without his headlights on).

Under Alabama’s pure comparative fault rule, Jason is prohibited from recovering ANY damages.

Alabama’s mitigation of damages rule

Alabama requires plaintiffs to “mitigate” their damages. Essentially, this means plaintiffs have a legal duty to avoid increasing their damages if they can do so reasonably.

How do you mitigate damages?

First, follow your doctor’s orders, and avoid participating in activities (such as sports activities) that might aggravate your injury or slow your recovery time.

Second, keep track of all your medical expenses. Additionally, keep track of your injuries' impact on your day-to-day life (for purposes of supporting a pain and suffering or emotional distress claim).

Damages/Expenses Worksheet
Damages worksheet to track expenses for your injury claim (medical treatment, property damage, lost wages, prescriptions)
Download in PDF formatDamage Caps in Alabama Personal Injury Lawsuits (3)

Post-Accident Journal Form
Sample accident journal/diary to help you document the effect on your daily life
Download in PDF formatDamage Caps in Alabama Personal Injury Lawsuits (5)

If you have questions about your lawsuit, including whether it’s subject to any damage caps, we recommend talking to an experienced Alabama personal injury attorney. You can find one using our free online directory.

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Damage Caps in Alabama Personal Injury Lawsuits (2024)

FAQs

Damage Caps in Alabama Personal Injury Lawsuits? ›

The Alabama Supreme Court ultimately held that the damage cap violated state constitutional provisions protecting the rights to trial by jury and equal protection of the law. The court also noted that the purported reason behind the damage caps (to help limit the rising cost of medical insurance) was flawed at best.

What is the cap on personal injury damages in Alabama? ›

There is a cap on punitive damages, however. Under Alabama law, they may not exceed three times the amount a jury gives for compensatory damages or $1.5 million, whichever is greater. However, if the defendant knowingly committed fraud or intentionally hid or destroyed evidence, the cap goes away.

What is the average personal injury settlement in Alabama? ›

$52,900.00 Average Payout

The average settlement or court award for a personal injury case typically ranges from $3,000 to $75,000.

Does Alabama have a cap on punitive damages? ›

The cap for punitive damages in personal injury lawsuits is three times the amount of compensatory damages or $1,500,000 – whichever is greater. For most cases not involving physical injury, punitive damages cannot exceed three times the compensatory damages or $500,000 – whichever is greater.

Why are caps on damages bad? ›

Some state courts have declared that damages caps are unconstitutional, at least in part because they cannot achieve some of their purported purposes, that is, reductions in medical liability insurance premiums, less practice of defensive medicine, and a greater supply of physicians, but others have deferred to the ...

What is the cap of damages? ›

Non-economic damages caps are tort reforms to limit (i.e., "cap") damages in lawsuits for subjective, non-pecuniary harms such as pain, suffering, inconvenience, emotional distress, loss of society and companionship, loss of consortium, and loss of enjoyment of life.

What is a cap on damages? ›

For information regarding a specific legal issue affecting you, please contact an attorney in your area. A damages cap legally limits how much you can recover from a defendant in a personal injury case.

How is pain and suffering calculated in Alabama? ›

As a result, insurance companies and attorneys often account for pain and suffering by using a multiplier between 1 and 5 (the more severe the injury, the higher the multiplier). For example, a traumatic brain injury would likely receive a multiplier of 5, whereas a sprained ankle would receive a multiplier of 1.

How much are most personal injury settlements? ›

Here are the average settlement amounts for some of the more common types of personal injury claims in California:
  • Workers' Compensation: $5,000 – $20,000.
  • Car Accident: $20,000 – $30,000.
  • Motorcycle Accident: $50,000 -$150,000.
  • Pedestrian Accident: $40,000 – $100,000.
  • Commercial Truck Accident: $50,000 – $150,000.
Mar 12, 2024

What is the formula for personal injury settlements? ›

The Damages Formula

The adjuster will multiply the medical special damages number by one and a half to three times if the injury is minor and up to five or more times if the injury is especially deliberating and long-term. After this number is calculated, any income lost as a result of the injury will be added.

What type of damages are punitive damages? ›

Punitive damages are also called “exemplary damages,” which are damages assessed in the legal process to punish a defendant for negligence. The defendant is usually a company or other large entity. Examples would medical malpractice cases or product liability cases.

What determines the amount of punitive damages? ›

There is no set formula for the calculation of punitive damages. The amount of punitive damages that are awarded will depend on the specific facts of the defendant's conduct. The court must ensure that defendants who deserve to be punished for their behavior do not receive punishment that is excessive.

In what cases are punitive damages awarded? ›

Punitive damages are awarded when the defendant's conduct is determined to have been so "willful, malicious, or fraudulent" that it exceeds the legal criteria for mere or gross negligence. Punitive damages typically involve awards over and above the compensatory damage award.

What are the three types of caps on damages? ›

There are three types of damages in personal injury claims: non-economic damages, economic damages, and punitive damages. Special and general damages are alternative terms used to describe economic and non-economic losses.

Why are damage caps good? ›

If a medical malpractice suit faces a cap on damages in that particular state, then the plaintiff can still recover a good amount through a product liability lawsuit. Many would say that damage caps are a good thing. They prevent lawsuit-happy litigants from unnecessarily filing claims.

Are caps on damages unconstitutional? ›

Smith v. Botsford General Hospital (6th Cir. 2005) Cap is constitutional because the legislature has the right to modify common law and statutory rights and remedies. Also, the jury still determines the facts and amount of damages so the right to trial by jury is not violated.

What is the limitation for personal injury cases? ›

Time limits

You should get legal advice urgently if you want to claim compensation. The most common claim in a personal injury case is negligence and the time limit for this is 3 years. This means that court proceedings must be issued within 3 years of you first being aware that you have suffered an injury.

What is the highest personal injury settlement? ›

Here are the Largest Personal Injury Awards & Settlements in US History
  1. $206 Billion Dollars for The Tobacco Master Settlement Agreement. ...
  2. $150 Billion For The Family of Robert Middleton. ...
  3. $20 Billion for the BP Oil Spill. ...
  4. $4.9 Billion For The Anderson Family From General Motors.
Jan 20, 2024

What is the compensation for personal injury? ›

There are two parts to a personal injury compensation settlement: General Damages – to compensate you for your injury and for your pain and suffering. Special Damages – to compensate you for any expenses you've incurred, loss of earnings, and your future care needs.

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