What Is General Damages
General damages are non-economic losses awarded in legal cases to compensate for pain, suffering, emotional distress, and loss of enjoyment of life. Unlike special damages, which cover specific out-of-pocket costs, general damages don't have a predetermined dollar amount. A judge or jury assigns a value based on the severity and duration of harm.
In Social Security disability claims, general damages rarely come into play during the standard SSDI or SSI application process. The Social Security Administration focuses on whether you meet the medical and functional criteria for disability, not on compensating you for pain or suffering. However, general damages become relevant if you pursue a civil lawsuit against a third party (like a negligent employer or manufacturer) whose actions caused or worsened your disability.
Where General Damages Apply in Disability Cases
You might encounter general damages in these scenarios:
- Third-party lawsuits: If your disability stems from someone else's negligence (a car accident caused by another driver, a workplace injury from faulty equipment, a defective product), you can sue for general damages separately from your SSDI or SSI claim.
- Workers' compensation cases: Some states allow workers' compensation claims to include general damages for permanent partial or total disability.
- Personal injury settlements: If you settle a lawsuit before an ALJ hearing, the settlement amount may include general damages for pain and suffering, in addition to special damages for medical bills and lost wages.
Impact on SSDI and SSI Benefits
A critical distinction: receiving general damages from a lawsuit does not directly affect your SSDI benefits. SSDI is an insurance program based on your work history, and the SSA doesn't reduce it based on other income or awards.
SSI is means-tested, however. If you receive general damages as a lump sum settlement, the SSA may count it as a resource that could temporarily suspend your SSI payments. Under current rules (as of 2024), you can have up to $2,000 in resources as an individual. A large general damages award could push you over this limit. Some states allow you to set aside a portion of a settlement into an ABLE account or special needs trust to preserve eligibility.
Documenting General Damages in Court
If you pursue a lawsuit for general damages, you'll need to provide evidence of your suffering:
- Medical records showing diagnosis, treatment, and prognosis
- Testimony from you and medical experts about pain levels, functional limitations, and psychological impact
- Documentation of life changes (lost hobbies, inability to work, social isolation)
- Expert economist testimony on lost earning capacity (relevant for SSDI recipients)
- Statements from family, friends, or therapists about observable changes in your quality of life
Judges and juries award general damages based on similar cases, jurisdiction-specific precedent, and the credibility of your evidence. Awards vary widely. In disability cases, amounts can range from $50,000 to several million dollars depending on age, severity, and permanence of injury.
Common Questions
If I win general damages in a lawsuit, do I have to report it to the SSA?
Yes. For SSDI, you should report it because the SSA may use the settlement to determine whether you can afford attorney fees or claim back pay. For SSI, you must report it immediately since it counts as a resource. The timing matters: if it puts you over $2,000, your SSI stops until the amount drops below the limit or you protect it in a trust.
Can I include general damages for my disability in my SSDI or SSI application?
No. The SSA doesn't award general damages. Your SSDI or SSI benefit amount is based on your previous earnings (SSDI) or low income and resources (SSI), not on pain or suffering. However, detailed documentation of your pain and functional limitations strengthens your medical evidence at an ALJ hearing.
How do general damages differ from back pay in a Social Security case?
Back pay is money the SSA owes you from the date your disability began until the date you were approved. It's calculated using the standard SSDI or SSI monthly benefit rate, not based on suffering. General damages come from third-party litigation and compensate for non-economic harm. They're separate systems with different purposes.