What Are Hedonic Damages?
We expect our lives to be more than work and sleep. There are countless different ways to enjoy life. For some, it might be curling up with a book next to a roaring fire. Others may look forward to building something in their workshop, playing a pickup game of basketball, or heading down to the lake for a swim and a picnic.
Doing your favorite things can be relaxing, exciting, and rewarding. While enjoying your chosen activities can feel like they make life worth living, is it possible to put a price on it? Welcome to the concept of hedonic damages.
Okay, What Are Hedonic Damages?
You might not have heard of hedonic damages unless you're involved in a personal injury or product liability case. Even then, there's a good chance it wasn't included. Hedonic damages are a controversial type of non-economic damage.
Most often available in tort cases, hedonic damages seek compensation for a reduction in the value of life. They can be found as part of injury and liability cases featuring living victims. Most states won't allow the expert testimony that drives hedonic damages in wrongful death cases.
Pinpointing exactly what hedonic damages are isn't simple. Focusing on the effect of an injury on a victim, it's been defined as any of the following:
- Loss of the ability to enjoy life
- Loss of the ability to perform life's usual functions
- Diminishment of a person's quality of life
The first instance of its usage in a courtroom was by economist Stan V. Smith in Sherrod v. Berry (1985). Smith remains an expert witness for cases involving hedonic damages.
How Hedonic Damages Work
Hedonic damages seek compensation for a victim who has suffered an injury and lost the ability to do certain things. If this sounds similar to damages sought for pain and suffering, that's because it is. In some instances, hedonic damages are folded into pain and suffering claims. Also, while "hedonic" comes from the same root word for "hedonism" (the Greek word hēdonē, meaning pleasure) the meaning does not necessarily mean loss of sexual activity. Compensation for the loss of a romantic relationship is known as a "loss of consortium."
While not common, hedonic damages are not unheard of. In 2022, the U.S. Supreme Court ruled that California law is correct in allowing for the pursuit of hedonic damages, although not in wrongful death suits. Juries are considered competent and able to determine proper awards.
This doesn't mean all jurisdictions are on board with hedonic damages. For example, Mississippi passed legislation that bans the recovery of damages for "loss of enjoyment of life" from pain and suffering. It goes on to explicitly forbid the use of expert testimony for the determination of the monetary value of pain and suffering or loss of enjoyment of life.
Why such an aggressive stance? Lawmakers may have been put off by the nebulous definitions of hedonic damages, which can be seen as a poor fit for a fact-driven courtroom. Determining lost earning capacity in a personal injury case involves solid data. The victim's income potential can be determined using established methods based on precedent.
Pain and suffering damages also apply well-used formulas for determining amounts. This is often reflected by the multiplier method, which factors in medical expenses, physical injuries, and length of disability.
Determining Hedonic Damages
The concept of hedonic damages is a bit more murky. Hedonic damages calculations often cite the Value of a Statistical Life (VSL) as a basis for determining dollar amounts for damage awards. VSL is used by the government as a part of a cost-benefit analysis for evaluating public policy options.
Proponents of hedonic damages often request an award based on whole life value derived from VSL minus human capital costs and the value of lost household services. This provides a basis for the value of a human life and calculating what an injured person has lost from it.
Opponents of hedonic damages deride using VSL as a vague 'willingness to pay' model. Given the rarity which which it appears as part of litigation, it would seem the courts agree. For some, there's no better experience than a long hike on a beautiful day that features sunlight warming your neck and a cooling breeze ruffling your hair. But how to assign a monetary value to that?
Though not a common occurrence in courtrooms, hedonic damages offer injury victims a possible source of additional compensation for the quality of life that's been taken away from them. Whether or not your jurisdiction will allow it is another matter. That's a question your attorney can answer.
Related Resources:
- Economic Recovery for Accidents and Injuries (FindLaw)
- Injury Damages - (FindLaw)
- Personal Injury Lawyers Near You - (FindLaw's Lawyer Directory)
