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Damage Caps and Personal Injury Settlements in Arizona

April 8, 2025

If you’ve been injured, the term ‘damage cap’ may have sent some alarm bells off in your head. Yes, damage caps are real, but they’re also prohibited in certain states and under certain circumstances. 

Jeff GOULD Law is the Attorney in YOUR Corner, with over 25 years of experience in personal injury cases. Our mission is to help you navigate the complex structure of Arizona personal injury law, which can be daunting and confusing, and give you the best guidance to make informed decisions about your legal rights. We understand the intricacies of the legal system and can help you avoid common pitfalls and maximize your chances of a successful outcome. 

Continue reading to learn more about damage caps, their legality in Arizona, and how we can increase your chances of getting the maximum compensation for your damages.

What Are Damage Caps?

Damage caps are legal limits on the compensation amount a person can recover in damages from a personal injury or medical malpractice lawsuit. For instance, if you were in a car accident and suffered severe injuries, a damage cap could limit the amount of compensation you could receive for your medical bills, lost income, and pain and suffering. In other words, it’s a law preventing claimants from recovering settlements above a certain amount. This means that a damage cap could lead to a claimant being unable to recover the necessary compensation to cover their damages.

Damage caps are intended to limit the financial burden on defendants, particularly in cases involving negligence or medical malpractice. They are designed to prevent excessive awards and potentially lower costs. 

Does Arizona Have Caps on Damages?

Many states have damage caps written into their laws. However, Arizona is one of only five states that considers damage caps unconstitutional. In fact, according to Article 2, Section 31 of Arizona’s constitution, capping personal injury damages is strictly prohibited and unlawful. This means the state’s law prohibits a cap on damages one would receive from a wrongful death or personal injury case.

Types of Damages in Arizona

There are three types of damages generally awarded in the state of Arizona: Special (Economic) Damages, General (Non-Economic) Damages, and Punitive Damages. Let’s take a closer look at each one and what they mean.

Special (Economic) Damages

Special Economic Damages refer to specific monetary losses. They are quantifiable, usually objective, are a number, calculated, and exact.  These losses range from medical bills (invoices/receipts) and lost income, to continuous treatment.  Loss of employment and missed business opportunities can also fall under the umbrella of economic damages. Common economic damages include:

  • Lost wages
  • Medical expenses
  • Loss of income
  • Property damage
  • Future medical costs
  • Physical therapy expenses

General (Non-Economic) Damages

General Non-Economic Damages refer to non-monetary losses. They are subjective and vary from person to person, there is no invoice/receipt, or exactly quantifiable number.  These losses are tricky to prove since a dollar sign isn’t attached to them. General, Non-Economic Damages include things like pain and suffering, emotional distress, loss of enjoyment of life, depression, and more. Common non-economic damages can include:

  • PTSD
  • Panic attacks
  • Eating disorders
  • Anxiety
  • Embarrassment
  • Sleeping disorders

Punitive Damages

Punitive Damages refer to actions taken to punish the defendant. In simpler terms, these are additional damages that can be awarded in cases where the defendant’s actions were particularly egregious or reckless.  In the state of Arizona, punitive damages are rarely awarded, and they come with a few stipulations. Firstly, the state does not allow claimants to recover punitive damages from public entities, including government agencies, public schools, hospitals, and organizations.  There are, however, certain circumstances under which they may be awarded, such as in a drunk-driving case.

Can Arizona Law Cap Damages in the Future?

There are no Arizona laws that will cap future damages. However, there are statutes of limitations regarding how soon you must file a lawsuit. In Arizona, the statute of limitations for a personal injury claim is two years from the date of the accident or injury. If you don’t file a claim within two years, you cannot receive compensation through the court.

How a Lawyer Can Help Maximize Your Compensation

At Jeff GOULD Law, we work tirelessly to help you reach maximum damage recovery. Our job as the Attorney in YOUR Corner is to secure a maximum payout and help you reach your rightful compensation through detailed evidence analysis and superior representation. 

After an accident, you deserve to get your life back on track, and we can help you restore normalcy faster than you could on your own. If you’ve been injured in a car accident, experienced a motorcycle collision, been bitten by a dog, or were hit while riding your bicycle or walking as a pedestrian…

Don’t DELAY: Call Jeff GOULD Law, the Attorney in YOUR Corner – TODAY!

DISCLAIMER: The information on this blog/site is not intended to be legal advice. It is for general informational use only. You should consult an attorney for advice regarding your situation. Further, this information does not create an attorney-client relationship.

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Jeff GOULD Law PC
7592 N. La Cholla Blvd. Tucson, AZ 85741
520-808-4435 [email protected]
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