Detailed Answer
When you sustain soft tissue injuries—such as sprains, strains or whiplash—in a New Jersey motor vehicle accident, you must consider economic and non-economic damages to calculate a fair settlement value. Soft tissue injuries often lack clear radiographic evidence, so you need thorough documentation of your treatment, expenses and impact on daily life.
1. Economic Damages
- Medical Expenses: Collect all bills for emergency care, imaging, physical therapy and follow-up visits. Personal Injury Protection (PIP) under N.J.S.A. 39:6A-4 covers up to $25,000 of these costs (N.J.S.A. 39:6A-4).
- Lost Wages: Document missed work with pay stubs, employer letters or tax returns. PIP also reimburses up to 85% of lost income (N.J.S.A. 39:6A-4).
2. Non-Economic Damages
- Pain and Suffering: This compensates for physical pain and emotional distress. Insurers often use the multiplier method: multiply total economic damages by a factor (usually 1.5 to 3.0 for soft tissue injuries).
- Per Diem Method: Assign a daily rate (for example $100–$200 per day) from accident to maximum medical improvement, then multiply by the number of days.
3. Applying New Jersey’s No-Fault and Tort Threshold Rules
Under New Jersey’s no-fault law, you must exhaust PIP benefits before seeking additional compensation. To file a tort claim, you must meet the “serious injury” threshold in N.J.S.A. 39:6A-8(a) (N.J.S.A. 39:6A-8). Soft tissue injuries rarely satisfy this unless they result in permanent injury or significant disfigurement.
4. Sample Settlement Calculation
Hypothetical example: Medical expenses $5,000 + lost wages $1,500 = $6,500 total economic damages. Applying a 2.0 multiplier yields $13,000 for pain and suffering. A fair settlement range would be $19,500 to $21,500 once you negotiate deductibles or policy limits.
Disclaimer: This article provides general information about New Jersey law and does not constitute legal advice. Consult a licensed attorney to discuss your specific situation.
Helpful Hints
- Keep a detailed treatment log with dates, providers and symptoms.
- Obtain a medical expert’s opinion on permanence of injury.
- Use comparables: research similar cases in New Jersey courts.
- Negotiate multipliers based on documented severity.
- Review your insurance policy limits before settlement talks.