How Damage Caps Influence Nevada Personal Injury Cases

The goal of a personal injury case in Nevada is to provide an injured accident victim with justice by paying financial compensation (also known as damages) for his or her losses to make the victim whole again. Many states, including Nevada, have statutory caps or limits on the financial damages that can be awarded. Understanding these caps can give you a better idea of how much your personal injury case is worth.

What Is a Damage Cap?

A damage cap refers to a maximum amount of financial compensation that can be awarded to a victim or plaintiff in a personal injury case based on a state’s statutory limits. Even if a jury awards an amount beyond the state’s damage cap, the value will be reduced to fall within the scope of the listed maximum value. In this way, a damage cap can reduce a plaintiff’s financial recovery by limiting it to a certain “cap,” or uppermost limit, regardless of the severity of the victim’s injuries and losses. Damage caps are included in a state’s civil laws but may be updated periodically to adjust for inflation or as laws change.

What Are Nevada’s Damage Caps?

Nevada’s damage caps can affect a personal injury case by keeping a plaintiff’s financial recovery within the bounds of the state’s maximum. However, the majority of cases filed in Nevada are not subject to any damage caps. There are no caps on economic and non-economic damages in typical cases, including awards given for most motor vehicle accidents, slip and falls, workplace accidents, and dog attacks. This means a plaintiff can receive any amount granted by an insurance company or awarded by a jury. Certain types of cases and damages, however, are subject to legal caps.

Medical Malpractice Claims

In a medical malpractice case against a health care provider, non-economic damages (also known as “pain and suffering”) are capped at a maximum of $510,000 under Nevada Revised Statute § 41A.035, regardless of the number of plaintiffs or defendants. This amount will be increased by $80,000 on January 1 of each year, ending on January 1, 2028, when the amount reaches $750,000. Beginning on January 1, 2029, the damage cap will be increased on January 1 of each year by 2.1 percent, rounded to the nearest dollar.

Claims Against the Government

Lawsuits that are filed against government agencies, such as the City of Las Vegas or the State of Nevada, are limited to a maximum of $200,000 per plaintiff. This encompasses all potential damages, both economic and non-economic. In addition, these cases cannot receive punitive damages (an additional amount sometimes awarded to punish a defendant).

Punitive Damages

If a plaintiff proves with clear and convincing evidence that a defendant acted with oppression, fraud or malice, the plaintiff can receive additional punitive damages. However, these damages are capped in all personal injury cases in Nevada to the greater of either:

  1. three times the total amount of compensatory damages, if these damages total $100,000 or more, or
  2. no more than $300,000 if the compensatory damages are less than $100,000.

Note that Nevada has an exception to this cap in personal injury cases involving defendants guilty of driving under the influence (DUI) and causing car accidents, product liability claims for defective or dangerous consumer products, insurance bad faith, and intent to harm.

How Damage Caps May Affect Your Personal Injury Case

Nevada’s damage caps could influence your claim by limiting its monetary value and your potential financial recovery. Understanding these limits can give you a more accurate and realistic depiction of how much your case is worth. Consult with an attorney at Koch & Brim, LLP for a free discussion about how Nevada’s damage caps may influence your particular case.