Pecuniary vs. Non-Pecuniary Damages – What Are They Are and How Are They Different?

posted in: Personal Injury

In Alberta, personal injury settlements account for your pain and suffering, out of pocket expenses, lost earnings, diminished housekeeping abilities, and lost future employability. Accident victims are entitled to compensation for their measurable financial losses, such as medical expenses and lost wages (pecuniary damages), and for the intangible losses, like emotional distress and loss of enjoyment of life (non-pecuniary damages).

Understanding Pecuniary and Non-Pecuniary Damages in Alberta Injury Law

Pecuniary damages are your damages you have suffered, as a result of an injury, that can be economically measured. These damages are relatively straightforward because they can be calculated based on actual expenses incurred or losses suffered. For example, if an injury prevents someone from working, their lost wages fall into this category, as do medical bills and any other expenses. Pecuniary damages aim to reimburse the injured party for the money they’ve had to spend or have lost due to their injury. These damages cover the direct financial impact the injury has had on someone’s life, ensuring they’re not out-of-pocket because of someone else’s negligence.

Imagine you’re involved in a car accident that leaves you unable to work for several months. Beyond the immediate pain, you’re now facing a pile of medical bills, ongoing rehabilitation costs, and the stress of not receiving your regular paycheck. This is where pecuniary damages come into play.

Pecuniary Damages in Alberta: Recovering Lost Wages and Medical Expenses

Let’s say, for example, you used to earn $4,000 a month, but due to your injury, you’re unable to work for six months. The lost wages, totaling $24,000, would be considered pecuniary damages. Similarly, if your medical treatments and rehabilitation costs amount to $10,000, this too falls under pecuniary damages. The aim is to reimburse you for out-of-pocket expenses and lost income, ensuring you’re not financially worse off because of your injury.

Non-Pecuniary Damages: How Emotional Suffering is Compensated in Alberta

Non-pecuniary damages, on the other hand, are not so easily measured because they compensate for losses that don’t come with a price tag.  These damages compensate the injured person for the intangible losses that result from an injury—losses like pain and suffering, emotional distress, loss of enjoyment of life, and loss of companionship. These are the kinds of damages that don’t come with a receipt but are just as significant to the person who has experienced them. Calculating non-pecuniary damages is more complex because it involves placing a monetary value on aspects of life that are inherently invaluable. The goal of these damages is to provide some compensation for the suffering and life changes the injured party has experienced and continues to experience.

For instance, imagine you were an avid hiker before your injury, but now, due to the injuries you suffered in an accident, you can no longer go hiking. While there’s no direct financial loss associated with this change, it undoubtedly impacts your quality of life and is compensable as a non-pecuniary damage. Or perhaps you’ve experienced significant emotional distress and depression as a result of your injury and its repercussions on your daily life. Though these losses do not have a specific monetary value, they are profound, and they too are compensable as non-pecuniary damages.

Pecuniary and Non-Pecuniary Damages: Fictional Scenarios to Illustrate Alberta Injury Law

To put these concepts into perspective, let’s consider some real-life scenarios. John, a construction worker, suffered a back injury on the job, leaving him unable to work for a year. His pecuniary damages included not only his lost wages but also his extensive medical treatment and physiotherapy costs. However, John also experienced severe depression due to his inability to work and support his family, and he grieved the loss of participating in sports with his children. While his financial losses were significant and calculable, his emotional and psychological injuries should be compensated as well.

Another example is Sarah, a professional pianist, who injured her hands in a car accident. Alongside her medical expenses and the income she lost during recovery, Sarah faced the devastating reality that she might never perform at her previous level again. Sarah’s loss of future employment opportunities and the joy she derived from playing music represented significant non-pecuniary damages.

Understanding Your Rights: Navigating Pecuniary and Non-Pecuniary Damages in Alberta

Understanding the difference between pecuniary and non-pecuniary damages is crucial for anyone navigating the aftermath of suffering injuries in an accident. While pecuniary damages address the measurable financial impacts, non-pecuniary damages seek to compensate for the immeasurable, yet equally important, aspects of one’s life affected by an injury.

If you’re ever in a position where you need to claim compensation for a personal injury, remember that your settlement should reflect both the visible and invisible wounds. It’s not just about covering the costs incurred, but also about recognizing the full spectrum of how your life has been changed.

Contact KMSC Law’s Injury Team: Protect Your Rights After a Motor Vehicle Collision

If you’ve been involved in a motor vehicle collision and need guidance on claiming compensation for both your financial losses and emotional suffering, KMSC Law’s Injury Law Team is here to support you. Our experienced team of injury lawyers understand the complexities of pecuniary and non-pecuniary damages and are committed to ensuring you receive the full compensation you deserve. We offer free, no-obligation consultations to help you understand your rights and navigate your claim. Contact KMSC Law today to take the first step toward protecting your future and securing the justice you deserve.