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If the lawsuit is successful, a party or parties are liable for the damages from the injury and their liability insurance company must pay what the courts have determined. These items may include many variables related to the accident such as medical expenses, income lost, permanent physical disability or disfigurement, emotional damages (such as stress, embarrassment, depression and other conditions), damage to property, and possibly the loss of family, social and educational experiences and more. Damages, money intended to restore the victim to the position they were in before the injury, is not considered taxable income by the federal or state governments.