Are There Caps on Personal Injury Settlements in Arizona?

Navigating a personal injury claim can be overwhelming–especially when you’re dealing with complex Arizona personal injury laws, insurance adjusters, and the financial strain of medical bills. As trusted Mesa car accident lawyers, we often hear the same critical question from injury victims: are there caps on personal injury settlements in Arizona?

No, Arizona does not impose caps on personal injury settlements. Article 2, Section 31 of the Arizona Constitution prohibits limiting the amount of damages a victim can recover, allowing full and fair compensation for medical costs, lost wages, emotional distress, and more. However, there is one key exception: Arizona’s punitive damages limit applies when the at-fault party is a public entity. In those cases, punitive damages are not recoverable.

Because every case is unique and may involve exceptions or limitations, it’s important to consult an experienced injury lawyer. At Gage Mathers, our team helps injury victims understand their rights and pursue the compensation they deserve without leaving money on the table!

How Do Personal Injury Damages Caps Work in Arizona?

We’ve noted that there are no damage caps in the state because Arizona law considers any legal restriction on the amount accident victims are entitled to claim unconstitutional. However, it is worth noting that claimants cannot attempt to claim punitive damages from a public entity, such as a city government.

Punitive damages are sometimes awarded in more serious personal injury cases or where the defendant has breached a clear duty of care and is ordered to pay additional compensation for their negligence. The Gage Mathers team will discuss your case with you in detail, analyze all the impacts and long-term effects that form part of your claim, and check that you are satisfied that the amount we are claiming for meets your expectations.

Can I Keep the Value of My Personal Injury Settlement Private?

Most personal injury claims are settled out of court, primarily because defendants and the insurance providers and legal teams representing them wish to keep the facts of the case out of the public eye.

Are personal injury settlements public record? An out-of-court settlement agreement is often confidential and ensures both parties can move forward without any obligation to share the agreed-upon compensation amount. Cases that require a formal court hearing, though, are part of the public record, including the verdict, evidence presented, and the compensation awarded by the court. 

This means that, in most cases, you are under no obligation to disclose the amount you have received in compensation, and this will be a confidential matter known only to you, your legal team, and the defendant.

How Much Can I Claim in Compensation During a Personal Injury Case?

Each personal injury case begins with a free initial consultation where we can assess the severity of the accident, the negligence of the third party, and the compensation we believe you may be entitled to. There is no one-size-fits-all calculation as your injuries, pain, stress, and financial costs may differ significantly from another person’s, as will the financial position of the third party, depending on whether they are an individual, a company, or a public entity.

The value of your personal injury claim will depend on factors such as:

• The nature of the injury, the age of the accident victim, and the immediate and long-term ramifications
• Impacts on your income, ability to work, or continue running a business
• Current and future medical bills, including therapies, rehabilitation, and surgeries
• Damages to your property and emotional harms such as stress, pain, and suffering

We recommend getting in touch if you believe you have a personal injury claim and are interested in the amount you may be entitled to. Consulting an experienced lawyer almost always results in a higher settlement value when all costs and non-financial impacts are taken into consideration.

What Happens if I Receive a Personal Injury Settlement But Have Other Debts?

Most claimants use some of their personal injury compensation to repay debts arising following their accident, including medical fees. Once any liens are paid, the norm is for you to control how you repay other debts or use the funds to adapt to your home, cover lost income, or pay for longer-term treatments to aid in a full recovery.

Can creditors take my personal injury settlement Arizona? We’ve discussed this in a separate guide, but most personal injury accident victims are protected. Even if other income sources or assets are subject to creditor claims, your compensation will usually be safeguarded. You may wish to deposit your compensation in a separate account to avoid any potential complications and to ensure you can prove which funds arise from your personal injury claim and are excluded from creditor action.

About the Author

Joseph D'Aguanno

Guided by the belief that being a highly skilled specialist in a narrow field is better than being ordinary in everything, Joseph “JD” D’Aguanno leads Arizona’s best personal injury law firm in Phoenix, AZ. Having extensive cross-training in pre-litigation negotiations and trial lawyer skills, with decades of experience, JD strives to provide clients with the most valuable legal services a personal injury lawyer can provide. Under his direction, Gage Mathers Law Group is an award-winning personal injury law firm providing aggressive representation to victims of a car accident, medical malpractice, dog bite, motorcycle accident, and other injurious events. Gage Mathers is trusted by thousands of lawyers and clients throughout the country because of their reputation for getting clients the maximum compensation they deserve.

Years of experience: Over 24 years
Bar number: 020421
Location: Phoenix, AZ
JD’s Profile