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How to Calculate Emotional Damages and Loss of Income in a Wrongful Death Case

July 18, 2025 
by LA Injury Group

When a loved one dies suddenly due to another’s negligence in a car crash, medical malpractice, or workplace accident, it leaves a family not only grieving but also struggling financially. There is the constant grief that will never be resolved, and then there’s the tangible everyday cost that never goes away: lost wages, unpaid bills, and the reality moving forward is different forever.

A fatal injury case is not about receiving a financial award alone. It is also about holding the negligent party accountable and the deceased family’s financial stability. The most common damages in a fatal injury case are emotional damages and lost wages. This article will discuss how these damages are calculated, and how your wrongful death attorney can assist.

Emotional Damages

They qualify as non-economic damages because they don't have a specific financial value, like medical bills or funeral costs. Rather, the compensation is considered to express the mental impact the death of a family member or loved one has on those remaining. They are awarded to compensate for the sorrow and suffering of those closest in kinship, as well as the longitudinal nature of the death in their life.

How to Calculate Emotional Damages and Loss of Income in a Wrongful Death Case

Types of Grief and Suffering Include: 

  • Loss of companionship, affection, and love 
  • Emotional trauma and mental distress 
  • Anxiety
  • depression
  • PTSD resulting from the death  
  • Reduced quality of life 

Jurors consider the total emotional context of circumstance – how close was the relationship, how sudden was the loss, and to what extent has the death impacted them daily?

Key Factors Affecting Emotional Damages

While damages for emotions are inherently subjective, courts rely on various factors to reach reasonable compensation. A few of these factors include:

Type of relationship: Spouses, children, or parents typically have higher compensation because they are often more dependent on the deceased

Dependency on the deceased: Emotional dependence, for instance, a child losing a sole carer, should support a claim for higher awards.

Age and life expectancy: When the deceased was young or the family that remains will have a long life to live without the love of their life, the impact tends to be generally perceived as larger.

Testimony: Testimony of therapists, grief counselors, and family members has the potential to strongly corroborate allegations of psychological harm.

Severity and duration of suffering: Clinical depression or anxiety lasting for a long duration is given serious consideration and tends to impact the compensation award substantially.

Common Ways to Measure Suffering and Grief

There isn't a specific formula to calculate grief and suffering, but two standard techniques are employed:

1. Multiplier Method

Total economic compensation (such as missed earnings or funeral expenses) are also multiplied by a factor of between 1.5 and 5 to determine the degree of the distress and suffering. For instance, if the economic compensation is $500,000 and the impact on the emotions was severe, a factor of 3 might be applied to result in an extra $1.5 million in the form of emotional damages.

2. Per Diem Method

This method places a value on the suffering and pain on a day-to-day basis (for example, $300 a day) and multiplies that by the duration the court thinks the grief will last, perhaps for a very long time or even forever.

Both approaches depend strongly on corroborating evidence, e.g., records of therapy or psychiatric diagnosis that are supported by the testimony of experts.

Financial Losses: Lost Income Calculation

Loss of income includes the income the deceased would have earned if his life hadn't been cut short. It's more than a mere paycheque and encompasses future financial possibilities the individual would have enjoyed.

Components of lost income are:

  • Base wages and salary
  • Bonuses and commissions
  • Pension and Retirement Contributions
  • Health insurance and other employee benefits
  • Business revenue (for self-employed individuals)

Value of the household services the deceased performed (home maintenance, childcare, cooking).

How Income Loss is Calculated

To determine future lost income, legal and financial experts use a number of steps:

Determine the deceased person's current income: Their employment records, tax returns, and W-2s are examined.

Project future income growth: This also encompasses increases in pay given through promotions or advancements in the deceased's job.

Calculate work-life expectancy: With the use of actuarial tables, the experts project how many additional years the individual would have worked.

Include benefits and bonuses: Lost employment perks and contributions to retirement are accounted for.

Subtract personal expenses: This covers what the deceased would have spent on themselves (often 20-30% of the income), which would not have directly benefited the family.

Assuming that the deceased person was earning $75,000 a year and was about to work for another 20 years, the gross loss would amount to $1.5 million. If 25% was to have been spent on themselves, the family's net loss would have amounted to $1.125 million.

Evidence that Strengthens Your Case

Whether you're claiming emotional or financial compensation, proper documentation is mandatory. Your evidence must be comprehensive and believable for you to be highly compensated.

For grief and suffering:

  • Psychiatric treatment records and therapy
  • Testimonies of mental health experts
  • Personal statements or journals of the grieving family
  • Attendances at support groups

For Loss of Income

  • Pay stubs, employment contracts, and tax returns
  • Employers' letters detailing possible promotions
  • Certified forensic accountants' financial projections
  • Pension projections or Social Security statements

The role of the expert witness

Expert witnesses can help make your case have more weight. Economists, mental health experts, and vocational experts offer objective, credible analysis that may support your allegations in court.

  • Economists estimate future earnings, benefits, and inflation.
  • Professional vocational experts determine the vocational path and potential earnings of the deceased.
  • Clinical insights on the impact of death on surviving family members are given by mental health experts.

These statements can prove to be instrumental in persuading a jury or an insurance organization of the extent of your losses.

Settlement vs. Trial: What You Need to Know

These cases are likely to be settled at the negotiation stage. They are quicker, discreet, and less emotionally taxing. But in case the party that caused the accident won't provide adequate compensation, a trial may have to happen to recover the amount you're entitled to.

A skilled wrongful death attorney los Angeles will review the viability of your evidence and advise you to determine the most effective approach—either by negotiating a settlement or building a strong case to present to a jury.

State-specific limits and deadlines

In California, certain rules that impact your ability to file and the computation of damages:

Statute of Limitations: You are required to file your case within two years after death.

Damage Caps: There are no caps on economic or emotional damages in non-medical wrongful death cases. Some medical malpractice cases may have certain limits.

Multiple claimants: When there are several individuals filing a claim (such as children and spouses), the court might distribute the awarded compensation between them.

Having an attorney experienced in California law ensures your case adheres to all the required procedures and obtains the maximum possible recovery.

FAQS

1. How do therapists support these claims?

Therapists offer documentation of your trauma and grief as well as the diagnosis of your mental condition. Their testimony and clinical notes determine the extent of your grief and distress.

2. Can I still claim if the deceased didn’t work?

Yes. Courts understand the value of unpaid services, including caregiving work, domestic work or volunteering, and allocate a financial equivalent for these types of work.

3. What happens when the person to blame also has criminal charges?

A wrongful death claim is completely different from a criminal case. You may still sue for damages even after the result of the criminal case.

4. Is this claim taxable?

They are not taxed at the federal level, but there are exceptions to that rule (such as punitive damages). A tax advisor will help clarify.

5. How long does this case usually take to resolve?

It depends. Cases last anywhere from 6 months to 2+ yrs, depending on whether or not it settles and how complicated the damages are to determine.

Conclusion

It requires experience, legal acumen, and resources to calculate compensation for the emotional pain and earnings lost in a fatal injury case. These are not mere figures;  instead, they represent the life that was taken and the hardship imposed on the ones left. A trained attorney can have your case handled with the diligence and accuracy it merits.

At LA Injury Lawyers, we deeply comprehend the suffering you're experiencing. Our experienced wrongful death attorney in Los Angeles assists you in seeking the justice and compensation you deserve to start the healing process. Leave the case burden to us while you tend to your family.  

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