Economic vs. Non-Economic Damages in Georgia Personal Injury Cases

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Georgia sorts the money in an injury claim with two pairs of labels that come from different statutes. General and special damages are distinguished in OCGA 51-12-2; economic and noneconomic damages are defined in OCGA 9-10-184, the statute on arguing the value of noneconomic damages. The labels matter because different rules attach to each: special damages must be proved, noneconomic damages are measured by the jury’s conscience, and future economic losses may be discounted to present value.

Two Pairs of Labels

“Damages may be either general or special, direct or consequential” (OCGA 51-12-1(a)). General damages are “those which the law presumes to flow from any tortious act; they may be recovered without proof of any amount,” while special damages are “those which actually flow from a tortious act; they must be proved in order to be recovered” (OCGA 51-12-2). Direct damages “follow immediately upon the doing of a tortious act,” and consequential damages are “the necessary and connected effect of a tortious act, even though they are to some extent dependent upon other circumstances” (OCGA 51-12-3).

The economic and noneconomic definitions apply “[a]s used in this Code section,” that is, within OCGA 9-10-184 (OCGA 9-10-184(a)). The two pairs therefore come from different statutes and are not defined in terms of each other.

What Counts as Economic Damages

For purposes of OCGA 9-10-184, “economic damages” means “pecuniary damages recoverable in tort for bodily injury or wrongful death, including, but not limited to, damages for past and future medical expenses; costs of rehabilitation; costs of therapy; loss of wages; loss of income; loss of earning capacity; loss of services performed by the injured or deceased person as a result of the injury or death, including domestic and other necessary services performed without compensation; and funeral or burial expenses” (OCGA 9-10-184(a)(1)). Separately, “necessary expenses consequent upon an injury are a legitimate item in the estimate of damages” (OCGA 51-12-7).

Medical expenses carry an added rule for newer claims. For a cause of action arising on or after April 21, 2025, special damages for medical and healthcare expenses are limited to the reasonable value of medically necessary care, treatment, or services, the trier of fact sets the amount, and for an insured plaintiff both the amounts charged and the amounts actually necessary to satisfy them under the insurance contract are relevant (OCGA 51-12-1.1(b), (c)). Senate Bill 68 applies that section only to causes of action arising on or after its effective date; earlier ones stay under prior law (SB 68, Section 9(b)).

Proving a Loss

Special damages must be proved to be recovered (OCGA 51-12-2(b)), and remoteness sets a further limit. Damage that is only the imaginary or possible result of a tortious act, or that other and contingent circumstances mainly caused, is too remote to support recovery against the wrongdoer (OCGA 51-12-8). Damages that are the legal and natural result of the act, even if contingent to some extent, are not too remote (OCGA 51-12-9).

Future Economic Loss and Present Value

“In determining the present value of future medical expenses, living expenses, lost wages, or other economic damages, the trier of fact may reduce the same to the present value based on a discount rate of 5 percent or any other discount rate as the trier of fact may deem appropriate” (OCGA 51-12-13(a)).

For example, imagine a jury that finds an injured person will need $25,000 in care eight years from now. Assuming annual compounding, discounting at 5 percent divides the figure by 1.05 raised to the eighth power, about 1.4775, for a present value of about $16,921. At 3 percent the divisor is about 1.2668 and the present value is about $19,735. The choice of rate moves this one item by $2,814.

What Counts as Noneconomic Damages

“Noneconomic damages” means “all damages recoverable in tort for bodily injury or wrongful death other than economic damages, including, but not limited to, damages for physical or emotional pain, discomfort, anxiety, hardship, distress, suffering, inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium, injury to reputation, and in wrongful death cases, the nonpecuniary elements of the full value of life” (OCGA 9-10-184(a)(2)). Compensation is the general measure where an injury can be estimated in money (OCGA 51-12-4), and for noneconomic damages there is no formula: the measure is the enlightened conscience of an impartial jury (OCGA 9-10-184(b)). When counsel may put a dollar figure for those damages before the jury is governed by OCGA 9-10-184(b) through (d), which Senate Bill 68 applies to causes of action pending on its effective date unless that application would be unconstitutional (SB 68, Section 9(b)).

Frequently Asked Questions

Does the 5 percent discount apply to pain and suffering?
The present-value statute speaks of “future medical expenses, living expenses, lost wages, or other economic damages” (OCGA 51-12-13(a)), and pain and suffering fall within the statutory definition of noneconomic damages (OCGA 9-10-184(a)(2)).

Is the value of unpaid household work an economic loss?
The definition of economic damages includes “loss of services performed by the injured or deceased person as a result of the injury or death, including domestic and other necessary services performed without compensation” (OCGA 9-10-184(a)(1)).

Is lost earning capacity an economic loss when the person was not working?
The definition lists “loss of earning capacity” as its own item, separate from “loss of wages” and “loss of income” (OCGA 9-10-184(a)(1)).

Are damages for several injuries from one event figured injury by injury?
The statutory definitions list kinds of loss, such as medical expenses, lost earning capacity, pain, physical impairment, and disfigurement, and do not divide damages by injury (OCGA 9-10-184(a)(1), (2)).

Can a party show the jury what an annuity would cost?
The present-value statute “shall not be construed to provide for the introduction of evidence showing the cost of any specific private investment product, including, but not limited to, an annuity” (OCGA 51-12-13(b)).

  • OCGA 51-12-1; OCGA 51-12-2; OCGA 51-12-3; OCGA 51-12-4
  • OCGA 51-12-7; OCGA 51-12-8; OCGA 51-12-9
  • OCGA 51-12-1.1(b), (c); OCGA 51-12-13
  • OCGA 9-10-184
  • Senate Bill 68 (2025), Section 9(b)

Disclaimer

This article provides general information about categories of damages under Georgia law. It is not legal advice, is not medical advice, and does not create an attorney-client relationship. How a claim is valued depends on the evidence and the specific facts. A person injured in an accident should seek medical care and consult a licensed Georgia attorney promptly about the particular situation.

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