South Dakota: Economic vs. Non-Economic Damages Guide

A cap frozen in 1976 dollars — and what that erosion has meant for malpractice claims in practice.

Economic damages: the documented, countable losses

South Dakota law refers to economic damages as "special damages" — medical expenses already incurred, lost wages from time away from work, and other provable financial losses tied directly to the injury.

Non-economic damages: the subjective losses

Non-economic damages cover the losses that don't come with a receipt: pain, suffering, and similar nonpecuniary harm. These are inherently harder to quantify, which is exactly why the multiplier method exists — to translate a documented economic figure into a reasoned estimate of the non-economic side.

A cap that hasn't moved in 50 years

South Dakota's $500,000 cap on noneconomic damages in medical malpractice cases was set in 1976, under SDCL § 21-3-11, and has never been adjusted since. Had the figure kept pace with inflation, it would be worth more than $2 million today — meaning its real purchasing power has shrunk by roughly three-quarters since it was enacted.

A real effect on who takes malpractice cases

That erosion hasn't stayed abstract. Some South Dakota attorneys have reported stepping back from medical malpractice work, in part because the capped noneconomic recovery — measured against the often substantial cost of expert witnesses required to prove a malpractice claim — can make some cases economically difficult to pursue on a contingency basis.

Economic damages are never touched

Whatever happens with the noneconomic cap, SDCL § 21-3-11 is explicit that there is no limitation on the amount of special damages that may be awarded. Medical bills, lost wages, and other documented economic losses are recoverable in full, regardless of how the noneconomic side plays out.

Economic vs. non-economic damages — frequently asked questions

What are economic damages in a South Dakota personal injury claim?

Economic damages, called special damages under South Dakota law, are your documented financial losses — medical expenses, lost wages, and similar provable costs tied to the injury.

What are non-economic damages in a South Dakota personal injury claim?

Non-economic damages are nonpecuniary harm — pain, suffering, and similar losses that don't come with a dollar receipt.

How much has South Dakota's malpractice cap eroded since it was set?

The $500,000 figure was set in 1976 and has never been adjusted. Had it kept pace with inflation, it would be worth more than $2 million today — meaning its real value has shrunk by roughly three-quarters.

Has this erosion had a practical effect on malpractice cases in South Dakota?

Some South Dakota attorneys have reported stepping back from medical malpractice work in part because the capped noneconomic recovery, measured against the cost of expert witnesses, makes some cases economically difficult to pursue on contingency.

Does South Dakota's malpractice cap apply to economic damages?

No. SDCL 21-3-11 states there is no limitation on the amount of special (economic) damages that may be awarded — the cap applies only to the noneconomic category.

This page provides general guidance only and is not legal advice. Figures are based on SDCL § 21-3-11, verified per our methodology. Confirm what counts toward a specific claim with a licensed South Dakota attorney before acting.