No, New Mexico generally does not impose damage caps on wrongful death cases unless there are specific exceptions. A family’s economic and non-economic damages in a wrongful death claim will only be capped, or limited, in a medical malpractice case or a claim brought against a government entity.
What Are Damage Caps?
Damage caps are statutory limits placed on the amount of financial compensation that can be collected by a plaintiff, or claimant, during a personal injury or wrongful death case. They set a maximum amount of money a plaintiff can be awarded in a civil lawsuit against one or multiple defendants. Not all states have damage caps; many have ruled them unconstitutional. However, New Mexico still imposes damage caps on certain types of cases and compensation.
When Does New Mexico Cap Wrongful Death Damages?
In general, New Mexico does not cap or limit how much surviving family members can recover in a wrongful death claim. Families are permitted to recover the full amount of their reasonable funeral and burial costs, lost wages and inheritance, pain and suffering, and loss of consortium damages.
Punitive damages may also be awarded without a cap if the case involves a defendant guilty of reckless, malicious or intentional conduct. However, there are two key exceptions where wrongful death damages are subject to statutory caps.
Government Liability Claims
Under the New Mexico Tort Claims Act (New Mexico Statutes Annotated §41-4-1 to §41-4-29), a state or municipal government agency may face liability for a wrongful death if the entity or one of its employees was negligent. However, these claims are subject to special statutory rules, including damage caps.
In New Mexico, damages are capped at the following when the defendant is a government entity:
- $200,000 for property damage
- $300,000 for past and future medical expenses
- $400,000 for all damages besides property damage and medical costs
In addition, no government entity may be held liable for more than $750,000 total for all damages. Finally, punitive damages may not be awarded against any government entity or public official who was acting within the course and scope of their employment.
Medical Malpractice Cases
Recent legislation in New Mexico, House Bill 99, reformed the state’s medical malpractice laws to impose a tiered cap on punitive damages. Currently, if a wrongful death claim is filed after a fatal case of medical malpractice, punitive damages are capped at different amounts based on the size of the medical facility:
- About $1 million for private practitioners
- $6 million for locally owned hospitals
- $15 million for large hospital systems
These caps are adjusted annually for inflation. These caps only apply to punitive damages; a separate cap of $750,000 applies to non-economic damages, in most cases. Non-economic damages are intangible losses, such as pain and suffering or diminished quality of life. Economic damages – such as medical bills and funeral costs – are not subject to a cap in a medical malpractice wrongful death claim.
How to Achieve Fair Damages for Your New Mexico Wrongful Death Case
Unfortunately, your family cannot trust an insurance company to protect your best interests or offer a fair amount for the death of your loved one outright. It is more likely that you will have to hire a local wrongful death attorney to represent you and negotiate a just case outcome. At Fine Law Firm, your lawyer will navigate New Mexico’s damage caps and other relevant laws to help your family achieve the financial compensation it deserves.