Damage caps some, but not most, personal injury cases in Nevada. If you’ve been in a car accident, slipped and fallen on someone else’s property, or been hurt at work, there’s a good chance that you won’t have to worry about damage caps in a related Las Vegas nursing home abuse lawsuit. They’re generally only relevant in cases related to medical malpractice, government tort claims, or those where punitive damages are in play.
What is a Damage Cap?
A damage cap refers to a limit on the amount of a monetary award that can be paid to a plaintiff in a personal injury lawsuit. Most damage caps apply to non-economic awards and punitive damages, but not economic damages. In most situations, economic losses can be compensated in full without risk of reduction to ensure that a plaintiff is made whole after an avoidable accident.
When a damage cap does apply, it means that a financial award can’t exceed the ceiling set by the cap. If the cap on non-economic damages is $300,000, the most a plaintiff can recover for pain and suffering is $300,000, even if a jury wants to award more.
Damage caps are generally increased annually or at regular intervals to account for inflation and changes in the economy.
In Nevada, there are three types of cases where damage caps can apply.
Damage Caps in Nevada Medical Malpractice Cases
Pursuant to Nevada Revised Statutes § 41A.035, non-economic damages are capped at $510,000 in medical malpractice lawsuits. The cap applies regardless of the number of defendants named in a medical malpractice lawsuit. The maximum you can recover for pain and suffering, disfigurement, inconvenience, and emotional distress cannot exceed $510,000.
The cap on non-economic damages in medical malpractice lawsuits will increase by $80,000 each year on January 1st until 2028, at which time the cap will be set at $750,000. On January 1, 2029, and in all subsequent years, the cap will be increased by 2.1 percent (rounded to the nearest dollar).
Damage Caps in Nevada Government Tort Claims
When a personal injury lawsuit involves a government agency – like the state of Nevada or the cities of Las Vegas or Reno – damages are capped at $200,000. Nevada Revised Statute § 41.035 provides that the $200,000 cap does not apply to interest that might accrue before an award is issued.
This is the one exception when economic damages are capped in Nevada personal injury cases.
Government tort claims can arise if you slip and fall on a public sidewalk maintained by the city or state, get hurt in a traffic accident with a government vehicle, or if a road defect causes a collision on a state highway.
Damage Caps on Punitive Awards in Nevada
Nevada caps punitive damages in almost all personal injury lawsuits. Punitive damages are paid above and beyond whatever compensatory damages are deemed appropriate to compensate a plaintiff for economic losses and harder-to-value pain and suffering. They’re only available at trial, and only when a Nevada jury finds by clear and convincing evidence that the defendant acted with fraud, malice, or oppression.
Nevada Revised Statutes § 42.005 explains that punitive damages may not exceed:
- $300,000 when compensatory damages are less than $100,000, or
- Three times the value of compensatory damages in all other cases.
Punitive damages aren’t subject to the caps in personal injury cases involving product liability, drunk driving car accidents, negligent emission, disposal, or spilling of hazardous waste, and bad faith insurance practices.
Benson & Bingham Can Help You Understand How Damage Caps Could Affect Your Personal Injury Case
If you’ve been hurt in an accident in Nevada, you may have the right to recover compensation for your medical bills, lost wages, and other damages. There are certain situations when caps on damages can apply and potentially limit a financial recovery.
Benson & Bingham’s Vegas personal injury lawyers can answer any questions you might have about your case, explain when damage caps could apply, and help you fight for the full value of your claim under Nevada law. Contact our law office to schedule a free consultation today.