In Maryland, there is no statutory cap on economic damages (such as medical bills or lost wages) in personal injury cases. Economic damages are intended to fully compensate plaintiffs for their actual financial losses, and therefore, they are not limited by any statutory cap.
However, Maryland does impose a statutory cap on non–economic damages (pain and suffering, emotional distress, etc.), which are different from economic damages. Non–economic damages are damages for which there are no invoices or receipts, and for which there is no formula for measuring.
Non-economic damages are capped in injury, wrongful death, and survival action lawsuits (lawsuits brought by the estate to recover for damages suffered by someone who has died). In these cases, plaintiffs are limited to a certain amount of money they can recover for their injuries or for the loss of their loved one.
You should work with a Maryland personal injury lawyer familiar with these laws to learn how the cap on non-economic damages in Maryland could affect your case.
What Are the Caps that Apply in an Injury or Wrongful Death Case in Maryland?
In Maryland, there is a limit, or “cap,” on the amount of money someone can receive for non-economic damages. These damages are for things like pain, emotional suffering, and loss of enjoyment of life. This cap goes up by $15,000 every year on October 1.
From October 1, 2023, to September 30, 2024, the cap for non-economic damages in personal injury and wrongful death cases is $935,000. On October 1, 2024, it will increase to $950,000.
It’s important to know that the cap amount depends on when the injury or death occurred. You do not apply the cap amount for the year when the lawsuit is filed; you apply the cap that was in place at the time of the injury or death.
For example, if a death happened in July 2022, you would need to use the cap amount that applied in 2022, which was lower than the current cap.
Also, remember that medical malpractice cases have a different, lower cap.
This cap benefits insurance companies because it limits how much they might have to pay out in these cases when a policyholder acts negligently and causes injuries or wrongful death and eliminates the risk of a large verdict. There are no limits on economic damages in Maryland.
In Maryland, when someone passes away due to another person’s negligence, multiple family members may file wrongful death claims. In some cases, the insurance company might have to pay more than the usual limit (or “cap”) for non-economic damages like pain and suffering. If there are two or more family members filing claims, the law allows them to collect up to 50% more than the cap.
This 50% increase applies no matter how many family members are involved. For example, it could be a spouse and one child, just a child, or a spouse with several children. The same 50% increase applies in all of these situations.
So, using the current cap of $935,000, the most a family could recover in a wrongful death case is $1,402,500 ($935,000 x 1.5 = $1,402,500).
Survival Action
In Maryland, a Survival Action is a type of lawsuit that can be brought on behalf of a person who has passed away due to someone else’s wrongful actions.
This type of claim focuses on the suffering and losses that the deceased person experienced before they died. It is called a “survival action” because the right to sue for these damages “survives” the person’s death and can be carried out by their estate.
For example, if a person was injured but didn’t pass away immediately, a survival action can cover things like the medical bills, pain, and suffering they experienced before they died. The money from this lawsuit goes to the person’s estate and can then be distributed to their heirs or according to the will.
A Wrongful Death Action, as we explain above, is different. This type of lawsuit is filed by the family members of the person who died, and it seeks to compensate them for the losses they experienced as a result of the death. This includes things like the loss of financial support, companionship, and emotional suffering due to the death of a loved one.
Key Differences:
- Survival Action is about what the deceased person went through before their death. The money goes to their estate.
- Wrongful Death Action is about the losses the family members suffer because of the death. The money goes directly to the family members.
Typically, both types of actions are filed together to make sure both the person’s and the family’s losses are covered.
In Maryland, there is no statutory cap on the economic damages recoverable in a Survival Action, such as medical bills, lost wages, or funeral expenses. These economic damages are meant to cover the actual financial losses that the deceased person experienced before they died.
However, there is a cap on non–economic damages (such as pain and suffering) in a Survival Action. The cap for non-economic damages is the same as it is for a personal injury case. As of October 1, 2023, the cap for non-economic damages is $935,000, and this amount increases by $15,000 each year on October 1. This cap applies to the total recovery for non-economic damages in a Survival Action.
For cases involving both Survival and Wrongful Death claims, the cap on non-economic damages is shared between the two claims. So, the total non-economic damages combined for both types of actions cannot exceed the applicable cap.
In Maryland, if both wrongful death and survival actions are brought together, the same cap on non-economic damages applies to the combined claims. You don’t get separate caps for each action. Instead, the cap for non-economic damages is shared between the two actions.
For instance:
- As of October 1, 2023, the maximum non-economic damages in a personal injury or wrongful death case is $935,000.
- If there are two or more beneficiaries in a wrongful death action, this cap increases by 50%, bringing the maximum to $1,402,500 (i.e., $935,000 x 1.5 = $1,402,500).
- This $1,402,500 cap applies to both wrongful death and survival actions combined—the total for all non-economic damages cannot exceed this cap in one case.
So, under current Maryland law, the family cannot recover $2,337,500 in non-economic damages. The correct maximum a family could recover in non-economic damages for both a wrongful death and survival action combined would be $1,402,500 for cases involving two or more beneficiaries.
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Understanding Non-Economic Damages in a Personal Injury Case
Maryland law defines non-economic damages under Md. Courts and Judicial Proceedings §11–108. According to this statute, non-economic damages are the compensation a victim or their family can recover based on the intangible losses they experienced.
By their very nature, non-economic damages are subjective. There is no economic formula for them. The courts, insurance companies, and attorneys assign or estimate values based on previous cases and their own experience with clients’ recoveries.
Non-economic damages could include physical pain and suffering, mental anguish, emotional distress, and more. You could recover compensation for new disabilities or scarring, loss of enjoyment because you cannot do activities you could before, or reduced quality of life if you live with ongoing pain or other health concerns. Spouses whose relationship with their partner was harmed because of the injuries can seek loss of consortium.
What Non-Economic Damages Are Available in a Wrongful Death Case?
When a victim dies from their injuries in a Maryland accident, their loved ones may be able to pursue two cases: a wrongful death action and a survival action. The wrongful death action is for their own losses, while the survival action seeks money for the estate based on the victim’s losses.
The laws that outline how these cases work, Md. Courts and Judicial Proceedings § 3-904, are complex. You will want to work with a Maryland wrongful death lawyer to navigate the process.
Examples of non-economic damages in wrongful death and survival action cases include:
- Mental anguish and emotional pain suffered by survivors
- Loss of companionship, love, comfort, protection, and care
- Loss of consortium for the surviving spouse
- Loss of advice, guidance, counsel, and care for surviving children
- Any conscious pain and suffering experienced by the victim before they passed away
Your attorney will help you document your non-economic damages as much as possible. When appropriate, they can seek compensation for your loved one’s wrongful death for you and other immediate family members, as well as for the estate based on a survival action.
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How Can I Fight for All the Compensation I Deserve in a Maryland Case?
First, you must recognize that only the non-economic damages in these cases have a cap in place. There are no caps on economic damages, future economic costs, or punitive damages. You will want to work with an attorney who will take the necessary steps to identify and document all economic damages and fight for punitive damages when appropriate.
Sometimes, these cases must go to trial to recover fair compensation. The insurance companies do not want to agree to pay out the maximum settlement possible for your non-economic damages. Filing a lawsuit could prompt the insurer to offer a fair settlement for non-economic damages, or the jury may award you the maximum damages available.
Does This Cap Affect the Payout in Other Ways?
This law does not affect the economic damages recoverable or punitive damages awarded in any way. Your lawyer will need to work to document all economic damages that have occurred or will likely occur in the future, often with the help of expert witnesses.
Punitive damages are not common in accident cases but can greatly increase a payout when the jury awards them. The defendant must be guilty of particularly dangerous, intentional, or fraudulent actions to warrant a punitive damages award in most cases.
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