In California personal injury cases, there are two types of damages awards. The first type, compensatory damages, attempts to put the plaintiff in the position in which they were prior to being involved in the accident. The second type, punitive damages, is less common and focuses on deterring especially bad conduct by the defendant.
When it comes to determining compensatory damages, a jury will review the evidence and make the final decision. However, a jury’s damages award must comply with the law. When it comes to determining the type and amount of damages that a personal injury victim is entitled to receive, courts often have to deal with the issue of insurance.
Insurance can complicate the damages calculation process because in many cases an injured plaintiff’s insurance company – or the insurance company of the at-fault driver – will reimburse the plaintiff for the costs of the medical expenses. Further complicating the matter is the fact that insurance companies have often negotiated discounted rates, such that the book value of the services provided is far greater than the amount actually paid out by the insurance company.