Cap on Damages

A cap on damages is a state law that limits the recoverable amount in certain categories of damages, typically noneconomic damages (pain and suffering, loss of consortium) or punitive damages. Caps are most common in medical malpractice cases but apply to general personal injury cases in some states.

Texas caps medical malpractice noneconomic damages at $250,000 per defendant. California's MICRA cap on noneconomic damages in medical malpractice was historically $250,000 and recently raised. Nevada caps medical malpractice noneconomic damages at $350,000. Most states have no general personal injury cap on noneconomic damages but do cap punitives at a multiple of compensatory damages.

Caps materially affect personal injury case strategy. In a capped state, building economic damages (medical bills, lost wages, future care) carries more weight, because those categories are usually uncapped. Pharmacy lien spend is part of the economic damages package: a documented medication regimen at $400 per month for twelve months is $4,800 of provable economic damage on top of the medical bills.

CreoRx's pharmacy lien data feeds the economic-damages exhibit in any demand letter or trial. Every fill, every refill, every charge is documented and traceable. In capped states, this kind of clean economic damage documentation is disproportionately valuable.