How does General Damages differ from Special Damages?
General damages compensates the Claimant with any loss which occurred as a result of the injury. This is straightforward and includes things such as pain and suffering, disadvantage in the labour market and where daily tasks can no longer be carried out. In a settlement the general and special damages are settled by the Claimant (or more likely their solicitor) and the Defendant’s representative to recover the costs. If a settlement is not reached, a court can award general damages by looking at all of the consequences of the case.
What are Special Damages?
Special damages are incurred when the Claimant uses their own money to pay for goods or services due to an accident or injury where they would not have had to if the accident had not have occurred.
For example: Imagine a road traffic accident where a Defendant has negligently crashed into the Claimant’s car, damaging the car and injuring the Claimant. Here is a non-exhaustive list of what could potentially be claimed for special damages:
- The cost of repairing the car
- The cost of hiring a replacement car
- Any medical costs (including medication)
- Any private treatment costs
- The travel costs of going to medical centres/hospital
- The cost of altering your home in cases of severe injury
Essentially they are expenses or financial losses incurred by the Claimant.
What about the interest?
Interest is added to the special damages which is payable on the court special account. The rate is currently relatively low at 0.5% which appears to follow the current economic trends. In contrast in January 2009, the rate stood at 6%.
Final Note
Remember, Claimants have been negligently injured and should not be out of pocket, so any money which claimants have spent should be re-couped!