We are independent & ad-supported. We may earn a commission for purchases made through our links.
WiseGEEK

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

What are Special Damages?

By Jodee Redmond
Updated Feb 07, 2024
Our promise to you
WiseGEEK is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGEEK, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Special damages are awarded in a legal action to a person or corporate entity who has been wronged or harmed. Unlike general damages, which are meant to compensate for intangibles such as pain and suffering, this type of compensation is meant to cover out of pocket expenses the plaintiff has incurred. There is always a specific dollar figure being sought in this type of legal remedy.

One of the types of expenses that falls under the category of special damages is lost wages. The injured person is entitled to be compensated for the financial loss he or she incurred while recovering from injuries sustained in an accident. In the case of a person who is disabled and unable to work due to the extent of their injuries, the damage award may contain an amount for loss of future earnings.

Special damages may also be awarded to provide compensation for medical bills and related expenses. These damages may be subject to a subrogation claim by the plaintiff's medical insurance company. This is a standard practice among insurers which exists for their financial protection.

The plaintiff's health insurer pays benefits under the policy up to its lifetime limits. The company keeps records of the amounts it paid out in connection with expenses incurred as the result of the accident. If the plaintiff is successful in recovering monetary compensation to pay for his or her medical expenses, this portion of the settlement is forwarded to the health insurance company in settlement of its subrogated claim.

This type of claim also comes into play when the special damages are awarded to compensate the driver of a vehicle damaged in an accident for repair costs. The insurer pays out on the policy and if the vehicle owner receives compensation for the same damages from the other driver or his or her insurance company, the owner's insurance company may attempt to recover the amount that it paid out earlier. A policyholder can find a reference to this type of provision in the policy language.

If the compensation being sought is the type that can be supported with a specific dollar value or receipts for money paid out, then it falls under the category of special damages. The court then determines if these expenses were incurred as the result of the defendant's actions or negligence. If so, then the plaintiff may be compensated for the loss.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
See our Editorial Process Share Feedback

Related Articles

Discussion Comments

By Vincenzo — On Jul 21, 2014

@Logicfest -- And that is exactly what trials are for. People want to settle those car wreck cases, but that doesn't always happen. In your scenario, the insurance company may question the methods used by a chiropractor, but will a jury take the same view? In jurisdictions where juries tend to side with chiropractors, you will find that insurance companies are far more willing to accept those bills when settling cases (as an example).

People can win big money in car wreck cases. Getting that cash isn't always easy.

By Logicfest — On Jul 21, 2014

@Terrificli -- Who will argue over special damages? Some insurance companies will, especially if some of those damages are considered questionable.

Take that car wreck you mentioned. The driver is injured and knows the other insurance company will pay. His lawyer tells him to run up those special damages because the attorney's plan is to run up those medical bills and apply a multiplier when trying to settle the case to cover general damages too. For example, $10,000 in special damages multiplied by three comes to $30,000 to settle the whole thing. It is a common tactic, after all, to settle matters by applying such a multiplier.

So the injured party heads off to a chiropractor and runs up a bunch of bills. The insurance company may refuse to recognize those bills, claiming that chiropractors aren't traditional medical doctors and use methods that are not considered valid.

In that example, the injured person may run up a bunch of chiropractic bills that the insurance company refuses to pay. So, yes, people will contest special damages from time to time.

By Terrificli — On Jul 20, 2014

These are usually the easiest to prove. Let's say someone is hurt in a car wreck. Medical expenses, lost wages and the cost of fixing the car are easy to establish. Honestly, who is going to argue over those amounts?

If liability is established, the real fight is over general damages. How much is a broken arm worth when measured by intangible means? Worse yet, how much is the life of a person worth if that person was killed in a car wreck where someone else is responsible? Setting those amounts is tough, but setting the amounts of special damages is quite easy.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.