In a personal injury case, the term “damages” refers to the money a court awards you to compensate for the losses you suffered because of someone else’s negligence. The purpose is to make you whole again by restoring you, as much as money can, to the position you’d have been in if the accident had never happened. However, there may be limits to how much compensation you can recover in certain cases.
Here’s what you need to know about how damages work in a North Carolina personal injury claim and how various legal caps on damages apply to these awards.
What Are the Different Types of Damages in a Personal Injury Case?
North Carolina personal injury law recognizes three main categories of damages:
- Economic damages compensate you for measurable financial losses like medical bills, lost wages, and property damage.
- Non-economic damages compensate you for losses that don’t come with a price tag, such as pain and suffering, emotional distress, and lost enjoyment of life.
- Punitive damages are awarded by courts to punish defendants whose conduct was especially egregious and to deter similar behavior in the future. You can only recover punitive damages if you prove by clear and convincing evidence that the at-fault party acted with fraud, malice, or willful or wanton conduct (C.G.S. § 1D‑15).
Are Economic Damages Subject to Caps?
North Carolina places no cap on economic damages in personal injury lawsuits. That means you can pursue the full value of your medical expenses, lost income, loss of earnings capacity, property damage, and any other quantifiable financial losses you suffered as a result of your injury. This is true even if your medical bills run into the tens of thousands or your injuries keep you from ever returning to work. That being said, just because one can get a judgment for a huge sum of money does not mean that they can actually collect the money if there is limited insurance and/or the defendant himself/herself does not have enough money to satisfy that judgment.
Are There Caps on Non-Economic Damages?
For most personal injury cases, North Carolina places no cap on non-economic damages either. You can seek compensation for pain and suffering, emotional distress, and loss of enjoyment of life without a statutory limit to your settlement or verdict.
The one significant exception involves medical malpractice cases (N.C.G.S. § 90-21.19) where non-economic compensation is subject to a statutory cap of $500,000 that adjusts for inflation every three years. However, even in medical malpractice cases, non-economic damages caps don’t apply if:
- The victim suffered disfigurement, loss of use of part of the body, permanent injury, or death, and
- The injury was caused by the defendant’s reckless, grossly negligent, fraudulent, intentional, or malicious conduct.
What Caps Are Placed on Punitive Damages?
North Carolina law caps punitive damages at three times the amount of your compensatory damages or $250,000, whichever is greater (N.C.G.S. § 1D-25). “Compensatory damages” is the umbrella term for all damages intended to compensate you for your losses, including both economic and non-economic (pain and suffering) categories.
There’s one important exception to the caps on punitive damages in North Carolina: if a drunk driver caused your injuries, the caps don’t apply (N.C.G.S. § 1D‑26).
Is There a Cap on Wrongful Death Damages?
North Carolina doesn’t impose a specific cap on wrongful death damages. A wrongful death case follows the same general framework as any other personal injury claim, meaning economic and non-economic damages are available without a statutory ceiling in most cases. However, the same caps apply for non-economic damages in medical malpractice cases and punitive damages.
How Can Damage Caps Affect Personal Injury Claim Compensation?
In practice, North Carolina damages caps affect a relatively small percentage of personal injury claims. Most cases don’t involve punitive damages at all, and the medical malpractice cap only comes into play in that specific category of claim.
That said, when caps do apply, they can significantly reduce the total damages a court awards you, particularly in cases involving severe, life-altering injuries where non-economic losses are substantial. An experienced attorney will account for applicable caps early in your case and build a strategy that pursues the maximum recovery available to you under the law.
What Other Factors Can Impact Your Financial Recovery?
Beyond damage caps, a few other legal rules can affect how much you ultimately recover:
- Contributory negligence – North Carolina follows a pure contributory negligence rule, which is one of the strictest in the country. If a court finds that your own negligence contributed to your accident in any way, you could lose your right to recover damages from other parties entirely (North Carolina Pattern Jury Instruction, Motor Vehicle Volume 104.10).
- Insurance policy limits – Even a large court award won’t necessarily translate to a full recovery if the defendant’s coverage falls short and they don’t have significant assets. A lawyer can help you identify all available sources of compensation and build the strongest possible case for a maximum recovery.
How Our Personal Injury Lawyers Can Help Maximize Your Compensation
At Younce, Vtipil, Baznik & Banks, our attorneys know how to build cases that account for the full range of damages available under North Carolina law. When you come to us for help, we can:
- Identify every category of damages available in your case
- Thoroughly investigate your case and document every loss you’ve suffered
- Prepare a thorough, well-documented record of those losses
- Anticipate the other side’s arguments and counter them effectively
- Negotiate aggressively for a fair insurance payout
- Take your case to court if necessary
Get in Touch with Our Raleigh Personal Injury Attorneys for More Information
With over 100 years of combined experience and more than $150 million recovered for accident victims, the team at Younce, Vtipil, Baznik & Banks understands what it takes to get full compensation for your injuries.* When you work with us, we fight for every dollar in damages you’re owed, using the full extent of our knowledge, skills, and resources. But don’t just take our word for it. Here’s what one former client had to say about working with us:
“I recommend the office of Younce, Vtipil, Baznik & Banks, P.A.! They handled my case very efficiently and professionally with a good outcome.” – Mark
If you’re ready to have us put our experience and dedication to work for you, call our team today at (919) 661-9000 for a free consultation. We’ll take the time to understand your situation, answer your questions, and give you an honest assessment of your claim.
*Each case is unique, and past results do not guarantee future outcomes.
About the Author
Robert C. Younce, JR
Robert C. Younce is an attorney at Younce, Vtipil, Baznik & Banks, P.A. and concentrates his law practice on personal injury and workers’ compensation law. He has tried over 100 workers’ comp cases to Opinion and Award and about a dozen personal injury jury trials to verdict. He has been board-certified by the North Carolina State Bar as a specialist in workers’ compensation law since 2001.
