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May 08 2023

What is the “Per Diem” method of calculating case value?

The per diem method is another way to calculate the value of non-economic damages in a personal injury settlement (Try the Per Diem Calculator). Non-economic damages refer to compensation for things like pain and suffering, emotional distress, and loss of enjoyment of life.

The per diem method involves assigning a daily value, known as the “per diem rate,” to the victim’s pain and suffering or other non-economic damages, and then multiplying that rate by the number of days the victim has suffered or is expected to suffer those damages. The resulting figure is added to the economic damages to arrive at a total settlement value.

For example, let’s say a victim has suffered a serious injury and is expected to experience significant pain and suffering for the next year, which is 365 days. If the per diem rate assigned to their pain and suffering is $100, the total settlement value for non-economic damages would be calculated as $100 x 365 = $36,500. This amount would then be added to the victim’s economic damages to arrive at a total settlement value.

Like the multiplier method, the per diem method is just one way to calculate the value of non-economic damages, and it is not always used in every case. The per diem rate can vary depending on the specific circumstances of the case, and other factors such as the strength of the evidence and the defendant’s ability to pay may also come into play when determining the settlement value. Ultimately, the settlement value is negotiated between the parties or determined by a judge or jury if the case goes to trial.

Written by settlementcalc · Categorized: Uncategorized

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