Exemplary and Punitive Damages in Texas
Most personal injury cases are focused on making someone whole again. That usually means compensation, or “damages,” for financial losses like medical bills or missed worktime, along with other effects like pain, stress, or long-term changes to daily life.
However, in cases where the facts point to decisions that were made with full awareness of the risk, there can be additional damages. Texas refers to them as “exemplary” damages, also called “punitive” damages. The word “punitive” gives a clue on the purpose of these types of damages—to punish the person or company that caused the harm. Exemplary or punitive damages aren’t available in every personal injury case, only in specific situations tied to gross negligence, fraud, or malice.
When Can Exemplary Damages Be Awarded in Texas?
Most personal injury cases don’t qualify for exemplary damages. Per Texas Civil Practice & Remedies Code, Section 41.001(5), it’s only the cases that have an element of fraud, malice, or gross negligence, based on the definitions in the statute.
Defining Fraud, Malice & Gross Negligence
Fraud means the defendant knowingly misrepresented or concealed the truth in order to cause harm. The statute specifically excludes constructive fraud, which means the conduct has to be deliberate.
Malice means the defendant intended to cause serious harm, not just any harm, but something substantial.
Gross negligence has two parts. First, the conduct must involve a clear and extreme risk, something that, from the outside, looks obviously dangerous. Second, the defendant must have been aware of that risk and ignored it anyway.
What Has to Be Proven for Exemplary Damages to Apply
Exemplary damages can’t be awarded unless the facts meet a specific legal test. The plaintiff also has to meet a higher standard of proof than what’s used in most personal injury cases. Even when the facts support one of those categories, the plaintiff has to prove it in a way that meets the legal threshold.
Clear and Convincing Evidence
Texas law uses a standard called “clear and convincing evidence,” which sits above the usual burden used in most personal injury cases. It requires the jury to be firmly convinced that the defendant’s conduct meets the definition of fraud, malice, or gross negligence. The evidence has to be strong enough to clearly support a finding of fraud, malice, or gross negligence under the legal definition.
Examples That Might Justify Exemplary Damages
The kinds of cases that support exemplary damages usually involve a clear risk that was ignored, repeated behavior, or some kind of cover-up. For example:
- A drunk driving crash where the driver had a history of prior arrests or warnings and chose to drive anyway.
- A company that knew about a safety issue but continued operating without fixing it.
- An employee who altered or destroyed records to hide what caused the harm.
It doesn’t mean that a case with serious injuries will meet the standard, even if the harm was preventable, but exemplary damages depend on how the harm happened, instead of how severe it was.
How Courts Decide the Amount of Exemplary Damages
Exemplary damages can only be awarded by a court after the plaintiff has proven fraud, malice, or gross negligence. Once that finding is made, the jury decides whether to award exemplary damages and how much to award. Their decision isn’t open-ended. Texas law gives them specific factors to consider when deciding the amount.
Factors That Affect the Amount
Texas Civil Practice & Remedies Code Section 41.011 lists the factors a jury can consider when deciding how much to award in exemplary damages. The list includes the nature of the conduct, the severity of the harm, and whether the defendant has already faced penalties for the same behavior. The jury can also consider the defendant’s financial position when deciding the amount. The amount is supposed to reflect both the seriousness of the conduct as well as the impact it had on the injured.
Limits on Exemplary Damages in Texas
Even when a jury decides to award exemplary damages, there are usually caps on how much can be awarded.
Texas Civil Practice & Remedies Code Section 41.008 sets out the general limit, which ties the amount to the economic and noneconomic damages already awarded in the case.
The cap is usually the greater of two options: either $200,000, or twice the amount of economic damages plus up to $750,000 in noneconomic damages.
This formula applies in most personal injury cases, but there are exceptions in certain types of cases where the cap doesn’t apply.
When the Cap Doesn’t Apply
There are a few situations listed in the statute where limits are removed entirely. One example is when the case involves certain types of felony criminal conduct, like aggravated assault or intoxication manslaughter. Another example is when the harm was caused by conduct that would qualify as a felony under specific provisions of the Texas Penal Code, even if no criminal charges were filed.
Key Elements Behind a Strong Exemplary Damages Case
Exemplary damages cases begin with identifying conduct that clearly falls within the statute. Then records or other evidence need to be gathered that show what the defendant knew and when they knew it.
Some examples of evidence could include:
- Emails or internal notes showing that someone had raised concerns
- Inspection results or safety reports that showed the risk
- Complaints made before the injury happened, either by workers or the public
- Maintenance paperwork that reveals unresolved problems
- Past events that showed the same risk, but nothing was done
- Testimony or written records showing the decision was made with full knowledge of the danger
Why Exemplary Damages Can Make a Difference
Exemplary damages exist to give the legal system a way to respond when the standard compensation in the case by itself doesn’t really reflect the seriousness of what happened. Victims can use exemplary damages to secure additional compensation that may help them recover more fully and rebuild after what happened. Exemplary damages can also help prevent the same conduct from putting other people at risk in the future.
If you believe that you may have a case for exemplary (punitive) damages, call the personal injury attorneys of Loewy Law Firm at (512) 280-0800 for a free consultation to discuss your case.
The content on this website is for general informational purposes and should not be considered legal advice. Laws change, and case outcomes depend on specific facts. Viewing this material does not establish an attorney-client relationship. For legal guidance on your specific situation, consult a qualified attorney.