In Texas, personal injury cases often involve two types of damages: compensatory and exemplary damages. Understanding the distinctions between these types is critical for plaintiffs seeking justice and adequate compensation.
Exemplary damages in Texas, also known as punitive damages, serve a different purpose from compensatory damages. While compensatory damages aim to restore the victim to their pre-accident condition, exemplary damages are intended to punish the defendant and deter others from engaging in similar conduct.
Compensatory damages encompass both economic and non-economic losses, including:
- Medical expenses,
- Lost wages,
- Pain and suffering,
- Physical impairment,
- Emotional distress,
- Disfigurement, and
- Mental anguish.
Unlike compensatory damages, exemplary damages are reserved for cases involving extreme misconduct by the defendant. Let’s explore when and how courts award exemplary damages in Texas.
When Might a Court Award Exemplary Damages in Texas?
Awarding exemplary damages is uncommon and requires meeting specific legal thresholds. Under the Texas Civil Practice & Remedies Code § 41.003, the plaintiff must provide clear and convincing evidence that the defendant’s actions involved:
- Fraud,
- Malice, or
- Gross negligence.
Examples of such behavior include intentionally harmful acts or reckless disregard for the safety and well-being of others. Ordinary negligence, bad faith, or violations of consumer protection laws are insufficient to meet this high standard.
Additionally, juries must reach a unanimous decision regarding both the defendant's liability and the amount of exemplary damages. This rigorous standard makes these damages rare but significant in Texas law.
When Are Exemplary Damages Not Permitted in Texas?
Exemplary damages are not awarded in certain situations, such as:
- If the plaintiff receives only nominal damages;
- If the plaintiff opts for multiplied recovery under another statute.
Texas Has a Cap on Exemplary Damages
Texas law places strict caps on exemplary damages to prevent excessive awards. Specifically, punitive damages cannot exceed the greater of:
- $200,000, or
- Twice the economic damages plus an equal amount of non-economic damages, up to $750,000.
However, certain cases—such as those involving intoxicated drivers—may allow for exceptions to these caps.
What Does the Jury Consider When Deciding Punitive Damages in Texas?
Juries in Texas evaluate several factors when determining punitive damages, as outlined in Texas Civil Practice & Remedies Code § 41.011. These factors include:
- The nature of the wrongdoing,
- The character of the defendant’s conduct,
- The degree of culpability,
- The sensibilities of the parties involved,
- How the conduct offends public justice, and
- The defendant’s net worth.
Contact an Experienced Southlake, TX Personal Injury Lawyer
If you believe your case warrants exemplary damages, it’s essential to consult an experienced attorney. The Francis Firm has a proven track record of helping clients achieve maximum compensation in personal injury cases.
Contact us at (817) 329-9001 for a free consultation. Our team proudly serves Southlake, Fort Worth, Keller, and surrounding communities, ensuring that your rights are protected and your voice is heard.