Economic damages: the documented, countable losses
Economic damages are the straightforward, receipt-backed part of a claim. In a Tennessee personal injury case, this generally includes medical expenses already incurred, lost wages from time away from work, property damage, and reasonably anticipated future medical care or lost earning capacity 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, permanent injury, and loss of enjoyment of life, among other 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.
The real case behind the cap
Jodi McClay suffered a crush injury with associated soft-tissue damage and bruising. A jury awarded her $444,500 for future medical expenses and $930,000 for noneconomic damages. After judgment, the defendant moved to apply the statutory cap, reducing the noneconomic award to $750,000 — McClay challenged the cap's constitutionality, and the question eventually reached the Tennessee Supreme Court.
Three constitutional arguments, all rejected
McClay argued the cap violated her right to a jury trial, violated the separation of powers between the judicial and legislative branches, and violated equal protection by disproportionately affecting women. In its 2020 decision, the Tennessee Supreme Court rejected all three arguments and upheld the cap as constitutional.
Economic damages were untouched
Throughout this entire dispute, McClay's $444,500 award for future medical expenses was never at issue — Tennessee's cap applies only to the noneconomic category. Economic damages, however large, are not limited by this statute.