Hedonic Damages
Hedonic damages refer to the economic value of loss of enjoyment of life, distinct from economic earnings loss. Methodology and admissibility vary by jurisdiction.
When it is used
Hedonic damages analyses are offered in jurisdictions that permit them. Many jurisdictions permit generalized loss-of-enjoyment-of-life testimony but exclude dollar quantification.
Step-by-step
- Identify jurisdiction-specific admissibility rules
- When permitted, apply value-of-statistical-life (VSL) literature (Viscusi & Aldy, 2003) with appropriate adjustments
- Document the methodology, base data, and case-specific adjustments
Data sources
- VSL literature (EPA, DOT Federal guidance on VSL)
- Peer-reviewed labor market and contingent valuation studies
Limitations
Hedonic damages are often excluded at the quantification stage. Even where permitted, the methodology is subject to substantial admissibility scrutiny.
Admissibility
Admissibility is jurisdiction-dependent and often limited. Courts frequently exclude dollar quantification (Mercado v. Ahmed, 974 F.2d 863 (7th Cir. 1992)) while permitting qualitative testimony on loss of enjoyment of life.
Frequently Asked Questions
Are hedonic damages admissible in federal court?
Federal courts have varied substantially, and many exclude hedonic damages quantification. Jurisdiction-specific research is required before relying on this methodology.
References
- Mercado v. Ahmed, 974 F.2d 863, 868 (7th Cir. 1992). openjurist.orgCase Law
- U.S. Environmental Protection Agency. (n.d.). Mortality risk valuation. epa.govGovernment
- Viscusi, W. K., & Aldy, J. E. (2003). The value of a statistical life: A critical review of market estimates throughout the world. Journal of Risk and Uncertainty, 27(1), 5-76. doi.orgPeer-Reviewed
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