How to Calculate Damages in Catastrophic Injury Cases
Catastrophic injuries can change a person’s life forever. Whether the result of a car crash, industrial accident, or medical malpractice, these injuries often lead to long-term or permanent disability, loss of income, emotional trauma, and significant financial burdens.
In Texas, victims of catastrophic injuries are entitled to seek compensation through a personal injury lawsuit—but calculating damages in such cases is complicated.
Unlike minor injury claims, which may involve straightforward expenses like medical bills and missed wages, catastrophic injury cases require a thorough evaluation of both current and future losses, including intangible harms.
If you're a victim or a family member of someone who has suffered a life-altering injury in Texas, understanding how damages are calculated is essential to pursuing the full compensation you deserve. It’s important to connect with a firm like the Rodman Law Office.
Here, I’ll break down the types of damages available, how each is calculated, and why working with an experienced Texas personal injury attorney is critical in catastrophic injury claims.
What Qualifies as a Catastrophic Injury?
Under Texas law, there is no single statute that defines “catastrophic injury,” but the term generally refers to severe injuries that result in long-term or permanent impairment. These injuries significantly disrupt the victim’s ability to work, care for themselves, or maintain their quality of life.
Common examples include:
Traumatic brain injuries (TBI)
Spinal cord injuries (paralysis, quadriplegia, paraplegia)
Amputations or limb loss
Severe burns
Loss of vision or hearing
Multiple fractures or crush injuries
Organ damage or internal injuries
Because of the long-term impact, these injuries often result in litigation and substantial financial claims.
Categories of Damages in Texas Catastrophic Injury Cases
Damages in personal injury cases fall into three main categories: economic damages, non-economic damages, and punitive (exemplary) damages. Each type requires different methods of calculation and legal standards of proof.
Economic Damages
These are the tangible, out-of-pocket financial losses directly related to the injury. They’re often easier to quantify than non-economic damages but may still require expert analysis in catastrophic cases.
Medical Expenses
This includes all past, present, and future medical treatment related to the injury. It may cover:
Emergency room and hospital bills
Surgeries and procedures
Physical and occupational therapy
Prescription medications
Assistive devices (wheelchairs, prosthetics, etc.)
Home healthcare or long-term care facilities
Ongoing rehabilitation
Future medical costs are typically determined with the help of medical experts and life care planners who can project the patient's lifelong needs and associated costs.
Lost Income and Earning Capacity
Victims may be compensated not only for wages lost during recovery but also for loss of future earning capacity—especially when the injury permanently limits the person’s ability to work or forces them into a lower-paying job.
Factors considered include:
Age and life expectancy
Education and job skills
Previous earnings
Opportunities for career advancement
Expert testimony from vocational economists
Loss of earning capacity can result in millions of dollars in damages over a lifetime, particularly for younger victims with high-income potential.
Property Damage and Out-of-Pocket Costs
If the injury resulted from an accident involving property damage (such as a vehicle collision), costs related to repairs or replacements may be included. Other reimbursable expenses might include transportation to medical appointments or home modifications (e.g., ramps, accessible bathrooms).
Non-Economic Damages
These damages compensate victims for intangible losses that don’t have a direct dollar value. In catastrophic injury cases, non-economic damages are often substantial.
Examples include:
Pain and suffering
Emotional distress
Loss of enjoyment of life
Loss of consortium (damage to a marital relationship)
Disfigurement or scarring
Mental anguish
Physical impairment
Texas does not impose a general cap on non-economic damages in most personal injury cases, except in medical malpractice lawsuits, where Texas Civil Practice & Remedies Code § 74.301 limits non-economic damages to:
$250,000 per claimant against a single physician or healthcare provider
Up to $500,000 in total against all healthcare institutions
For other types of catastrophic injury claims, non-economic damages are determined by the jury based on the evidence presented and the impact on the victim’s daily life, according to Texas Public Law.
Punitive (Exemplary) Damages
Furthermore, punitive damages are not meant to compensate the victim but to punish the wrongdoer and deter similar behavior in the future. These are awarded only in cases involving gross negligence, fraud, or malice, as outlined in Texas Civil Practice & Remedies Code § 41.003.
Examples might include:
Drunk driving accidents
Reckless industrial safety violations
Intentional harm or assault
Texas limits punitive damages to:
Twice the amount of economic damages plus an amount equal to non-economic damages (up to $750,000), or
$200,000, whichever is greater
To secure punitive damages, the plaintiff must provide “clear and convincing” evidence of egregious misconduct.
Key Factors That Influence Damage Calculations
Additionally, calculating damages in catastrophic injury cases isn’t just about adding up bills. Several complicated and subjective factors influence the total value of the claim:
Severity and Permanence of the Injury
The more severe and permanent the injury, the higher the potential compensation. A spinal cord injury that results in permanent paralysis will justify a significantly larger settlement than a temporary or treatable injury.
Impact on Daily Life and Independence
Courts and juries consider how the injury affects the victim’s ability to perform basic tasks, participate in activities, or maintain relationships. The loss of independence often plays a major role in determining non-economic damages.
The Plaintiff’s Age and Life Expectancy
Younger victims typically require a longer duration of care and suffer a greater total loss of earning capacity. This can significantly increase both economic and non-economic damages.
Comparative Fault
Texas follows a modified comparative fault system. Under Texas Civil Practice & Remedies Code § 33.001, a victim’s damages will be reduced by their percentage of fault. If they’re found to be more than 50% at fault, they’re barred from recovering damages altogether.
This makes it critical to build a strong case proving the defendant’s liability and minimizing any arguments of shared blame.
Working With Expert Witnesses
In catastrophic injury cases, expert witnesses are essential to accurately calculate damages. These may include:
Medical experts to establish the extent of injuries and future treatment
Life care planners to map out ongoing care needs and costs
Vocational experts to evaluate job loss and earning potential
Economists to calculate future financial losses and present value
Experienced attorneys in Texas will coordinate these experts to develop a comprehensive picture of the victim’s losses.
Settlement vs. Trial
Because the potential damages in catastrophic injury cases are so high, insurance companies and defendants often fight hard to limit liability. While many cases settle out of court, others require a full trial to obtain fair compensation.
Your attorney will negotiate aggressively on your behalf and prepare for trial if necessary, using expert testimony, medical records, and personal narratives to convey the depth of your losses to a judge or jury.
Contact My Firm Today
At my firm, we often work in high-stakes personal injury litigation and are dedicated to fighting for full and fair compensation. I serve clients in Austin, Texas, and throughout the state, including Travis County, Williamson County, and Hays County.
Contact me today for a free consultation to learn how we can help you take the next step toward financial recovery and peace of mind.