Mitigating Losses to Maximize Compensation
The main goal of personal injury law is to help an injured client get monetary compensation for physical, psychological, and financial losses caused by the wrongful conduct of others. Although the amount of compensation differs for each client, injured parties are required to mitigate losses that occur as a result of an injury.
The failure of an injured party to mitigate losses is one of the most common reasons courts reduce financial compensation. Luckily, it is also easily avoided.
What is “failure to mitigate losses?”
To determine the overall value of a personal injury claim, courts consider the physical, psychological, and financial impacts of a claimant’s injuries. In addition to measuring costs associated with medical care, lost income, and general suffering, courts analyze whether the claimant has worked to mitigate (or minimize) the impacts of their injuries.
Simply put, courts may reduce compensation for losses that could have been avoided had the claimant attended more reasonable amounts of treatment or put in a more wholesome effort to return to work following an accident.
How do I know what is reasonable?
What qualifies as “reasonable steps to mitigate” varies according to the unique circumstances of each claimant. The good news is that courts do not demand perfection. Rather, courts require that claimants minimize any injuries and financial losses to the best of their abilities.
For physical and psychological injuries, claimants are generally required to seek reasonable medical treatment and follow medical advice. Repeated failures to attend doctors’ appointments, take prescribed medications, or perform physiotherapy exercises can lead to lower compensation.
Similarly, an injured claimant must take reasonable steps to get back to work once they are physically and psychologically able. Again, what is reasonable in the circumstances varies for each claimant, but may involve adjusting your tasks, working part time, or looking for a new job compatible with your abilities.
What does this mean for me?
What a court views as ‘reasonable’ depends on the needs and circumstances of each claimant. In some cases, simply failing to finish your treatment or document your job search can lead to significant problems with your claim. Consulting a personal injury lawyer early on in your recovery can reduce uncertainty and maximize potential compensation.
The road to physical and financial recovery after a serious injury can be daunting. Book a free consultation to learn more about how professional legal assistance can help you navigate this process.