Understanding Economic Damages in Child Personal Injury Cases

When a child is seriously injured due to someone else’s negligence, the financial consequences can be overwhelming. In legal terms, the economic damages in a child’s personal injury case are the measurable, quantifiable financial losses that result from the injury. These damages differ from non-economic damages (like pain and suffering), because they are calculable with precise dollar amounts based on bills, pay records, and projected costs. Understanding the scope of these damages is essential for parents, guardians, and attorneys working to ensure a child receives full and fair compensation.

Economic damages are calculated to help return the injured child and their family to the financial position they would have been in if the injury had never happened. Especially where lifelong care or disability is involved, these costs can extend far beyond initial hospital stays and therapy sessions. Courts and insurance companies alike rely on documented evidence and often expert testimony to quantify these losses.

What Constitutes Economic Damages in Child Injury Claims

Economic damages are also referred to as “special damages” because they relate to objectively measurable financial losses. In child personal injury cases, they typically include several distinct categories:

1. Medical Expenses

Medical costs often make up the bulk of economic damages in a child injury claim. These include:

Emergency room and hospital bills
Surgeries and diagnostic tests
Follow-up treatments and specialist visits
Physical, occupational, and speech therapy
Assistive devices (e.g., wheelchair, braces)

According to national injury data compiled by the Children’s Safety Network, medical costs from childhood injury-related hospitalizations are substantial: totaling $6.6 billion for children age 19 and under in a single year, with falls and motor vehicle injuries among the largest contributors.

2. Future Medical Care

In severe cases, injuries may require long-term or lifelong medical intervention. This may include ongoing therapy, future surgeries, psychological counseling, or specialized care. Courts require competent expert testimony to reasonably estimate these future medical costs.

3. Lost Parental Income and Lost Future Earnings

While a child doesn’t earn wages, serious injuries can impact their earning potential later in life. This includes:

Future lost earnings: the income the child likely would have earned as an adult if not injured.
Parental lost income: when a parent must take time away from work to care for the injured child.

Economic damages cover lost wages and reduced earning capacity, and proving this often requires vocational expert analysis.

4. Special Education and Support Services

If a child’s injury affects cognitive development or school performance, compensation may be awarded for:

Tutoring or remedial education
Special schooling or individualized education plans (IEPs)
Adaptive learning resources

These elements are increasingly recognized as legitimate economic costs in serious injury claims.

5. Home and Vehicle Modifications

Severe injuries, particularly those causing physical disability, often require adapting the child’s living environment. Examples include:

Wheelchair ramps and accessible bathroom modifications
Lowered countertops and widened doorways
Customized vehicles or travel accommodations

These expenses can reach into the tens or hundreds of thousands of dollars over time.

6. Out-of-Pocket Expenses

Families often incur unexpected expenses directly tied to the injury, including:

Transportation to medical appointments
Childcare during recovery
Temporary home services

These costs are compensable when clearly linked to the injury.

Why Economic Damages Matter

Economic damages form the backbone of a child injury claim because they anchor the financial reality of the loss. Unlike non-economic damages (like emotional distress, which are inherently subjective), economic damages are precise. They rely on bills, contracts, and expert projections rather than individual emotion.

A comprehensive calculation ensures that the injured child, and the family that supports them, does not bear the costs of someone else’s negligence.

“In child injury cases, accurately quantifying economic damages isn’t just about numbers, it’s about securing the financial foundation a family will need years into the future.”— John J. Malm, Naperville catastrophic injury lawyer

This perspective underscores the long-term financial stakes of these cases and why thorough documentation and expert support are critical.

The Economic Burden of Child Injuries

To understand the scale of economic impact that injuries can cause, consider the following:

Child maltreatment, including abuse and neglect, carries a lifetime non-fatal cost of roughly $830,000 per victim and a fatal case can exceed $16 million when lifetime costs are accounted for.
In the United States, nearly 2,800 minors died and another 227,000 were injured in car accidents in one recent year, with a total economic cost of nearly $40.7 billion in medical care and losses.
Personal injury settlements involving children can vary widely based on severity:
- Minor injuries might settle in the low five figures.
- Severe injuries with long-term consequences can exceed $500,000 or even reach into the millions.

These figures reflect both the direct economic impact of treating injuries and the indirect costs related to long-term care and lost future opportunities.

Challenges in Proving Economic Damages

Calculating economic damages isn’t simply a matter of adding up receipts. Because children have their whole lives ahead of them, determining future costs often involves:

Predicting future medical needs
Estimating the financial impact of lifelong disabilities
Projecting adjustments for inflation and cost of living
Expert testimony from economists, vocational specialists, and life-care planners

Courts and insurers scrutinize these projections carefully, meaning strong evidence is essential. Documentation such as medical records, wage projections, educational assessments, and expert reports are key to recovering full compensation.

How Illinois Courts Treat Child Injury Claims

In Illinois, courts give special legal protection to minors involved in personal injury claims because children lack the legal capacity to make binding decisions about their own legal rights. Illinois law recognizes that children are wards of the court whenever they stand to receive compensation for injuries, and the judicial system uses several mechanisms to protect their interests, especially when a settlement or judgment is proposed.

Guardian ad Litem and Court Approval

When a minor’s personal injury case is resolved before trial, the court must approve any settlement to ensure it is fair and in the child’s best interests. This stems from the doctrine of parens patriae, under which the state acts as a legal guardian for those unable to protect their own interests.

To evaluate a proposed settlement, Illinois courts frequently appoint a guardian ad litem (GAL). This is an independent adult, often an attorney, whose job is to investigate the case, review the settlement terms, and advise the court whether the terms are fair and protective of the child’s interests. The GAL’s written report factors heavily into the judge’s decision.

There is no single statute that specifically governs all personal injury guardianships, but local probate and circuit court rules commonly require:

A verified petition for settlement approval filed in probate court or with the trial judge handling the injury lawsuit.
Submission of supporting documents, including medical records and an explanation of why the settlement is in the minor’s best interest.
Appointment of a GAL unless the court finds such an appointment unnecessary.
A GAL’s investigation and recommendation regarding the fairness and adequacy of the settlement.
Court findings that the settlement is “fair and reasonable” before approval.

In many Illinois jurisdictions, there are additional procedural requirements such as:

Providing a statement by the attending physician describing the nature and extent of the child’s injuries when filing a petition.
Court approval of attorney fees and costs in the settlement.
If settlement funds will be held by a parent or other representative, the court often requires they be deposited into an approved account for the child’s benefit rather than distributed directly.

Guardian of the Estate

Separate from the guardian ad litem, Illinois courts often appoint a guardian of the estate after settlement. This guardian is responsible for managing the minor’s settlement funds and ensuring they are preserved until the child reaches adulthood or another appropriate distribution event occurs. This additional layer of protection guards against premature or improper use of significant settlement proceeds by parents or guardians.

Court’s Role and “Best Interests” Standard

The court’s approval isn’t merely procedural, judges must make a substantive determination that the outcome will benefit the child. Factors courts examine include:

Whether the proposed settlement reasonably protects the child’s future medical and care needs.
Whether attorney fees and litigation expenses are appropriate.
Whether the distribution safeguards the child’s financial future, which could involve structured settlements or restricted accounts.

By supervising these steps, the Illinois judiciary ensures that settlements and judgments for minors are not only legally binding but truly equitable for the child’s long-term welfare.

Frequently Asked Questions about Economic Damages in Personal Injury Claims for Children

Q: What exactly are economic damages?

A: Economic damages are quantifiable financial losses resulting from a personal injury, such as medical bills, therapy costs, lost income, and future care costs.

Q: Can a child recover for future lost earnings?

A: Yes. When an injury affects a child’s lifelong ability to earn income, future lost earnings can be claimed and must be supported by expert testimony.

Q: Do economic damages include emotional impacts?

A: No. Emotional impacts like pain and suffering fall under non-economic damages, which are calculated separately.

Q: How are long-term medical costs calculated?

A: Courts typically rely on life-care planners, pediatric specialists, and economic experts to project future medical needs and associated costs.

Q: Who decides if a claim is fair?

A: When a child is involved, many courts appoint a guardian ad litem or require judicial approval of settlements to protect the child’s interests.

Q: Is insurance enough to cover all costs?

A: Often, insurance policies have limits that fall far short of the actual economic impact of a child’s lifelong care needs. Securing additional compensation through a personal injury claim may be necessary to bridge the gap.

Contact the Top Illinois Child Injury Attorneys at John J. Malm & Associates

Economic damages in child personal injury cases are not merely figures on a spreadsheet, they represent the real, often lifelong costs a family incurs when a child is hurt due to another’s negligence. From tens of thousands in immediate medical bills to potentially millions for lifelong care and lost earning capacity, the financial stakes are high and demand meticulous preparation and legal expertise.

If your child has been injured in an accident that wasn’t their fault, you deserve experienced, dedicated legal counsel who understands how to quantify every economic loss and hold the responsible parties accountable. Contact John J. Malm & Associates today for a free consultation. Let us help you secure the compensation your family needs and your child deserves: now and into the future.