What is the difference between actual and potential damages?

Actual damages refer to the amount that the injured person has already suffered, while potential damages refer to the amount that the injured person may suffer in the future. In New Mexico, actual damages are measured by the costs of medical treatment, lost wages, pain and suffering, lost earning capacity, and other tangible losses that the injured person has already experienced. Potential damages, on the other hand, are based on the likelihood of physical, emotional, financial, or other damages that the injured person may face in the future. This could include future medical treatments, lost wages, and other types of losses. In a catastrophic injury case, a court will consider both actual and potential damages when determining the amount of compensation that should be awarded to the injured person. The court must carefully consider the severity of the injury, the extent of the damages, and the projected recovery time to determine the full extent of the damages that should be awarded. The difference between actual and potential damages is important because it helps determine how much compensation the injured person should be entitled to. By considering both actual and potential damages, the court can ensure that the injured person is fairly compensated for the harm they have suffered.

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What is the difference between actual and potential damages?

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