Economic damages are the money losses an injury causes that can be proven with records: medical bills, lost pay, lost earning capacity, household help, property damage and out-of-pocket costs. California calls them “objectively verifiable monetary losses” (Civil Code 1431.2). The deadline to sue for an injury is generally two years in California (CCP 335.1) and Texas, and three in Washington.
Questions about your injury case?
Leave your name and phone. We call you back today, in English or Spanish, and the consultation is free.
Free consultation · English y Español · No fees or costs unless we win
How does the law define economic damages?
In California, tort damages are the amount that “will compensate for all the detriment proximately caused” (Civil Code 3333). The statutes split that harm into two groups.
| State | Economic damages | Where |
|---|---|---|
| California | Objectively verifiable money losses, including medical expenses, lost earnings, burial costs and repair or replacement costs | Civil Code 1431.2(b)(1) |
| Texas | Compensatory damages for “actual economic or pecuniary loss,” excluding exemplary and noneconomic damages | CPRC 41.001(4) |
| Washington | No current general definition; the old section that defined the term was repealed in 2023 | RCW 4.56.250 |
The other group is noneconomic damages: pain, emotional distress, loss of enjoyment of life and similar harm with no bill attached. Our page on general and special damages explains how the older terms match these labels. California jurors list the two groups separately on the verdict form (CACI 3902).
What are the main types of economic damages?
California’s jury instructions list each item of economic damage the injured person claims separately (CACI 3903).
Past and future medical expenses. You must prove the reasonable cost of reasonably necessary care you received, and for future care, care you are “reasonably certain to need” (CACI 3903A). The notes to that instruction summarize the California Supreme Court’s Howell decision: past medical damages are limited to the lesser of what was paid or incurred and the reasonable value of the care, so an insured person usually recovers what the insurer actually paid plus what is still owed. For people without insurance, the inquiry is broader. Texas sets a similar limit by statute: recovery of medical expenses incurred “is limited to the amount actually paid or incurred by or on behalf of the claimant” (CPRC 41.0105).
Lost earnings. Wages, salary and other income you already lost, plus income you are reasonably certain to lose in the future because of the injury (CACI 3903C).
Lost earning capacity. A separate claim for the reduced ability to earn money. A work history is not required, so a student, a stay-at-home parent or someone between jobs can still claim it (CACI 3903D).
Household services. The reasonable value of the household services you would have been reasonably certain to provide if you had not been hurt (CACI 3903E).
Property damage. For a damaged car or other belongings, the measure is the drop in value or the reasonable cost of repair, whichever is less (CACI 3903J). The sources for that instruction also recognize compensation for loss of use, such as a rental car while yours is in the shop.
Out-of-pocket costs. Mileage to appointments, prescriptions, braces, a hired helper or a home ramp.
How do you prove economic damages?
Economic damages are won with documents. The usual proof includes:
- itemized medical bills, explanations of benefits and lien notices;
- pay stubs, W-2s, tax returns and a letter from your employer listing missed days and hours;
- receipts, mileage logs and repair estimates;
- for serious injuries, a life care plan that lists future treatment, equipment and care, with a cost for each;
- for future losses, an economist’s testimony on wage growth, medical inflation and present value.
Texas allows a shortcut for bills. A sworn affidavit from the provider or its records custodian, with an itemized statement, can be enough evidence that the charge was reasonable and the care necessary, unless the defense serves a timely counteraffidavit (CPRC 18.001). It does not prove the crash caused the injury, and its deadlines are strict.
How are future economic losses calculated?
A jury awarding future economic damages, such as surgery you will need in five years or earnings you will lose until retirement, must reduce them to present cash value, because money received today can earn interest. The defendant must prove the amount of that reduction, and jurors may consider testimony on it (CACI 3904A). The directions for that instruction say future noneconomic damages are not discounted this way.
Example only: a doctor says you will need $8,000 of care each year for 15 years. That is $120,000 in today’s prices. An economist would then add expected cost increases and discount the total back to a lump sum today, which may land above or below $120,000. The real figures depend on the medical evidence and the testimony each side presents.
Free case review
Tell us what happened and where the claim stands. Our team reviews it and explains your options. You owe no fees or costs unless we win.
Why do economic damages matter so much?
- Joint liability in California. When several defendants share fault, each one is liable only for its share of noneconomic damages (Civil Code 1431.2(a)). Economic damages stay joint (Civil Code 1431), and the notes to CACI 3902 explain that Proposition 51 kept joint liability for those losses. You can collect all of them from any liable defendant that can pay.
- Medical malpractice caps. California’s cap in claims against health care providers limits noneconomic losses only. Medical bills and lost earnings are not capped (Civil Code 3333.2).
- Uninsured drivers. A California driver convicted of DUI for the crash, or an owner whose car lacked required insurance, generally cannot recover noneconomic losses but can still recover economic ones (Civil Code 3333.4). Voters added that rule through Proposition 213 in 1996.
Example only: in California, a jury finds $100,000 in economic and $100,000 in noneconomic damages, with Driver A 80 percent at fault and uninsured and Company B 20 percent at fault. Company B can owe the full $100,000 of economic damages but only $20,000 of the noneconomic damages.
Texas and Washington work differently. In Texas, a defendant is jointly liable only if it is more than 50 percent responsible, and you recover nothing if you are more than 50 percent responsible (CPRC chapter 33). Texas also caps exemplary damages using a formula built on economic damages (CPRC 41.008). In Washington, liability is generally several only, but if you were not at fault, the defendants who are found liable are jointly liable for the sum of their shares (RCW 4.22.070), and any fault of yours reduces the award without barring it (RCW 4.22.005). More on comparative fault.
What to do now
- Start a folder for every medical bill, explanation of benefits and receipt, from the ambulance on.
- Ask your employer for a written record of missed days, hours and pay rate.
- Keep a mileage log for medical visits and pharmacy trips.
- Write down the household work you can no longer do and who now does it.
- Get repair estimates and photos of your car or other damaged property.
- Ask your doctors to put any future treatment recommendations in writing.
- Talk to a lawyer before signing a release or accepting a check.
Get help adding up your losses
If someone else’s carelessness hurt you, call Beverly Law at (310) 552-6959 for a free, confidential review in English or Spanish. You owe no fees or costs unless we win.
Common questions
How long do I have to claim economic damages?
The injury claim and the economic damages within it share one deadline. In California it is generally two years for injury and three years for property damage (California Courts; CCP 338), and a claim against a government agency must first be presented within six months (Gov. Code 911.2). Texas allows two years (CPRC 16.003) and Washington three (RCW 4.16.080).
Will I recover the full amount the hospital billed?
Often not. In California and Texas, past medical damages are generally tied to what was actually paid or still owed, which can be less than the first bill. What you or your insurer owes is what matters.
Can I claim lost earning capacity if I was not working?
Yes. California does not require a work history for this claim. The question is what you could have earned and how the injury reduced that ability.
Do you handle Texas cases?
Yes. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou.
Ask a question
Not ready to call? Write your question and a member of our team answers you. No cost and no commitment.
Personal Injury Questions — Beverly Law
Free case review. We gather the records, deal with the insurance company and keep you informed in English or Spanish. You owe no fees or costs unless we win.
Related pages
Personal Injury Questions · General and special damages · Comparative fault in California, Texas and Washington · How lawyers calculate settlement value · Personal injury questions · Law Blog
Talk to our team today
Leave your name and phone and tell us in one line what you need.
Sources
- Cal. Civil Code 1431.2
- Cal. Civil Code 1431
- Cal. Civil Code 3333
- Cal. Civil Code 3333.2
- Cal. Civil Code 3333.4
- California Secretary of State, Proposition 213 (1996), text of proposed law
- CACI 3902, Economic and Noneconomic Damages
- CACI 3903, Items of Economic Damage
- CACI 3903A, Medical Expenses, Past and Future
- CACI 3903C, Past and Future Lost Earnings
- CACI 3903D, Lost Earning Capacity
- CACI 3903E, Loss of Ability to Provide Household Services
- CACI 3903J, Damage to Personal Property
- CACI 3904A, Present Cash Value
- Cal. Code of Civil Procedure 335.1
- Cal. Code of Civil Procedure 338
- Cal. Government Code 911.2
- California Courts Self-Help, Statute of limitations
- California Courts Self-Help, Ley de prescripción
- Tex. Civ. Prac. & Rem. Code chapter 41 (41.001, 41.0105, 41.008)
- Tex. Civ. Prac. & Rem. Code chapter 18 (18.001)
- Tex. Civ. Prac. & Rem. Code chapter 33
- Tex. Civ. Prac. & Rem. Code chapter 16 (16.003)
- RCW 4.56.250 (repealed 2023)
- RCW 4.22.005
- RCW 4.22.070
- RCW 4.16.080
Important: This page is general information, not legal advice, and reading it does not create an attorney-client relationship with Beverly Law. Laws change and every case is different; talk to a lawyer about your own situation. Attorney advertising. Prior results do not guarantee a similar outcome. You owe no fees or costs unless we win. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: 2026-11-13.