It is hardly a secret that recovering from an injury is not cheap. Many injured Wisconsin residents have seen news stories about substantial settlements and understandably wonder: “How much is my case worth?” Even if it’s unclear whether your case could reach those substantial heights, you may still hope for a sizable payout.
However, even if a jury awards you that sizable payout, there’s still a barrier that could reduce that amount—damage caps. These have been known to catch people off guard. Damage caps restrict how much compensation you can recover, provided your case meets certain circumstances.
At Nicolet Law Accident & Injury Attorneys, we prioritize open communication with our clients at every stage of the legal process and work to help them recover as much compensation as possible.
What Damages Are There In Personal Injury Cases?
In any personal injury case, damages represent the many ways your injury disrupted your life. There are three key kinds of damages:
Economic Damages
If an expense takes money out of your pocket, it likely counts as an economic damage. These can include:
- Medical bills
- Lost wages
- Loss of earning capacity
Non-economic damages
These damages cover the emotional and psychological toll of your injury. They have no out-of-pocket cost by default, but they can still be compensated. These can include:
- Mental health conditions
- Loss of enjoyment of life
- Chronic pain and disability
Punitive damages
If your injury is caused by someone’s egregious negligence, punitive damages can apply. These damages aren’t related to anything you lost; they serve to punish the guilty party's reckless misconduct.
Let's Use A Scenario
You’re parked in a school zone waiting to pick up your child. A driver going 80 miles per hour careens into you.
An economic damage can be the hospital bill for your broken arm.
A non-economic damage can be not being able to drive your child to their soccer games.
Punitive damages can apply to egregious speeding in a school zone.
As you can see, damages can take many forms. Let’s look at how Wisconsin law can set limits on how much you can recover.
What Damage Caps Does Wisconsin Have?
Wisconsin’s damage caps apply to four key situations in personal injury law:
1. Medical Malpractice Claims (Non-Economic Damages)
If the action or inaction of a medical professional led to your injury, you may have the right to seek compensation. While economic damages are not capped, your non-economic damages are.
Non-economic damages in medical malpractice cases: $750,000 cap
2. Claims Against The State or Local Government
If your injury was caused by a state government agency, Wisconsin law limits you to $250,000 (Wis. Stat. § 893.82).
If a local government entity is responsible, the cap decreases to only $50,000. If the claim is against a volunteer fire department, that cap cuts in half to $25,000.
To clarify, these caps are not exclusive to one of the three kinds of compensation—economic, non-economic, or punitive—they represent the sum total of what you can recover.
3. Punitive Damages
Wisconsin caps punitive damages at:
- $200,000 or
- Twice the amount of actual damages, whichever is more.
- Wrongful Death (Non-Economic Damages)
When an accident leads to the passing of a loved one, Wisconsin law restricts non-economic damages.
- Death Of A Child: $500,000 cap
- Death Of An Adult: $350,000 cap
It can be vital to talk with an experienced lawyer about your options if damage caps apply to your case.
Why Do Damage Caps Exist At All?
For many injured people, damage caps can feel unfair. If a jury grants someone $500,000 but their claim is against the local government, why do they get a tenth of the compensation? It’s a frustrating reality to run into. Damage caps exist primarily because:
Cost Management
Sky-high verdicts could bankrupt government and state entities. The threat of escalating settlements may also chase medical providers out of Wisconsin.
Keeping Jury Awards Contained
Jury verdicts can be spurred by emotion, and damage caps maintain boundaries.
Insurance Fees
Increased settlements could throw the financial ecosystem of the insurance industry into chaos. If there were no damage caps, insurance companies might raise premiums as a defensive measure.
Damage caps tend to evoke strong opinions. Even if they provide balance to the legal system, there’s no denying the hurt they can cause. Those with claims that go above and beyond damage caps tend to be facing dire circumstances.
How Does Comparative Negligence Play A Role?
Wisconsin follows a comparative negligence system, which means that if you are more than 50% at fault for your injury, you cannot recover compensation. This means that your damages have the potential to be reduced twice.
Let’s explain this with a scenario:
You get in an accident with a vehicle owned by the local government. The damage cap is $50,000. Your damages are worth $70,000.
- If you are found to be 20% liable for your accident that means you stand to recover 80% of the original $70,000. So, you could be eligible for $56,000.
- However, since the damage cap is $50,000, you would be limited to that capped amount.
- Now let’s say you’re found to be 40% liable for your accident. You stand to recover 60% of your original $70,000.
- Because 60% of $70,000 is $42,000, you fall under the damage cap, and thus it is not applied.
The Reality About Government Immunity
Not all government employees and agencies can be held legally accountable. However, Wisconsin law does relinquish government immunity in cases where:
- The person acted with malicious intent
- They failed a ministerial duty
- A known danger was not addressed quickly enough
- They exhibit negligent medical judgment
Let’s Explain These With A Scenario
Picture a broken traffic light causing chaos at a busy Milwaukee intersection. A city maintenance worker is assigned to fix it, and for the sake of example, let’s say there’s a 72 hour deadline for completing the repair.
Malicious intent
Malicious intent is when someone intends to cause harm and acts accordingly.
In this example: If the worker intentionally ignores the repair, hoping a crash will happen, their actions could meet the threshold for malicious intent.
Ministerial Duty
Ministerial duties do not require judgment or discretion. They are defined clearly, and failing to complete them is often a breach of duty.
In this example: If there is a timeline for repairing the traffic light that has been neglected, the city worker fails their ministerial duties.
Some ministerial duties are also bound by state law. All of the legal nuances can present a compelling reason to seek support.
Known Danger
If a government entity is aware of a dangerous situation, that can trigger a duty to act promptly. In some cases, that awareness can instigate a ministerial duty.
In this example: If the city is aware of the broken traffic light and only schedules a repair– not taking any other safety measures—injured drivers may argue that not enough was done to protect the general public.
It should be noted that cases involving “known danger” liability can raise difficult questions: What counts as a timely response? At what point does inaction count as negligence?
Negligent Medical Judgment
While medical decisions often involve personal discretion, there can come a point when a choice is viewed as negligent or reckless.
In this example: Yes, the city maintenance worker likely wouldn’t fall under this category. However, if a city-employed EMT arrives at the scene of an accident caused by the broken traffic light, they are expected to act with a duty of care. If they ignore clear signs that the injured party needs hospital care and choose not to transport them, they could be held legally responsible.
Why It Can Be Vital To Have an Attorney
Dealing with life after an injury can be incredibly stressful. The fact that your compensation may be significantly reduced is yet another headache in a long line of frustrations.
An experienced personal injury lawyer can absolutely be an asset and provide a strong foundation of support as you try to move forward. Here’s a look at how:
- Educating you on how damage caps and Wisconsin law in general can apply to your case
- Using the legal intricacies to develop a strategy to fight for your compensation
- Identifying liable parties
- Defending you against accusations of liability
- Pursuing compensation that reflects your needs
Insurance companies often look for ways to justify pushing your liability over the 50% comparative negligence threshold.
Get In Touch With A Wisconsin Personal Injury Lawyer Today
At Nicolet Law, we understand the uncertainty that can come after an injury. It’s why our attorneys serve the state of Wisconsin with the goal of providing clarity and offering steadfast advocacy.
While facing a pile of medical bills, damage caps can present an especially frustrating challenge.
That's where we come in. With decades of combined experience, our attorneys are ready to navigate the intricacies of Wisconsin law and fight to maximize your compensation. If you have questions about your case and the role damage caps may play, we are ready to take your call and learn more about your story.
Contact Nicolet Law for a free consultation at 1-855-NICOLET or by sending a message through our contact form.
Russell Nicolet, Firm President & Personal Injury Attorney