The multiplier method: scaling off your damages
The multiplier method is the industry's default approach. It takes your economic damages — medical bills and lost wages — and multiplies that total by a factor generally between 1.5 and 5, chosen based on injury severity, recovery time, and whether any permanent impairment is involved.
The per diem method: valuing each day
The per diem (Latin for "per day") method works differently. It assigns a specific dollar value to a single day of pain and suffering and multiplies that rate by the total number of days of documented recovery, tying the value directly to time rather than to the size of your medical bills.
No cap to check against, even in malpractice
In many states, this choice matters most once the noneconomic estimate approaches a statutory ceiling. New Jersey has no such ceiling for compensatory damages — not in an ordinary injury claim, and not in medical malpractice either. Multiple bills proposing a $250,000 malpractice noneconomic cap have been introduced over the years, most recently in January 2026, but none has become law. Whichever method produces the larger noneconomic figure, it stands on its own.
So the choice comes down to fit, not ceiling avoidance
Without a cap in play, choosing between the multiplier and per diem methods in New Jersey is purely about which better reflects the specific facts — a long, well-documented recovery period might favor the per diem approach, while substantial medical bills might favor the multiplier. Neither choice is shaped by a ceiling waiting at the end.
Neither is required by New Jersey law
Both methods remain negotiating tools, not a formula New Jersey courts are required to apply. A jury retains full discretion to award whatever amount it finds appropriate for noneconomic damages.