The phrase refers to tools or methodologies, often informal, used to estimate the monetary value of non-economic damages in personal injury cases within a specific jurisdiction. An example would be attempting to quantify the emotional distress, physical discomfort, and diminished quality of life resulting from an accident for the purpose of settlement negotiations or litigation.
Determining an appropriate settlement amount for intangible losses is a complex process, as it involves subjective experiences. Such estimations are important because they can influence settlement offers, jury awards, and ultimately, the compensation an injured party receives. Historically, various rules of thumb have been employed, such as multiplying medical expenses by a certain factor; however, the admissibility and weight of such methods vary greatly.
