Texas Laws on Punitive Damages

In general, the purpose of a personal injury claim is to make an injured accident victim whole again. A successful claim can result in compensatory damages to pay an individual for the losses he or she suffered due to someone else’s negligence, such as medical bills and lost wages. Some cases also result in punitive damages. This is an additional amount awarded to penalize a defendant. If you need guidance, consulting with a San Antonio personal injury attorney can help you navigate this complex process and pursue the compensation you deserve.

What Are Punitive Damages?

Punitive damages, also known as exemplary damages, are defined in Texas Civil Practice and Remedies Code § 41.001(5)as “any damages awarded as a penalty or by way of punishment but not for compensatory purposes.” Unlike economic and non-economic damages, which are meant to compensate a victim or plaintiff, the goal of awarding punitive damages is to penalize an at-fault party for egregious acts of wrongdoing. They are not awarded in every Texas personal injury case.

When Are Punitive Damages Allowed in Texas?

Section 41.003 of state law sets the standards by which punitive damages can be awarded by the courts in Texas. This law permits the recovery of exemplary damages only if the plaintiff can prove through clear and convincing evidence that his or her injuries were caused by the defendant’s:

• Fraud: a materially false or misleading statement made intentionally or knowingly by the defendant.
• Malice: specific intent by the defendant to substantially injure or harm the plaintiff.
• Gross negligence: an act or omission by the defendant that has an extreme degree of risk, meaning a probability of harm to others based on the circumstances.

Examples of personal injury claims that might lead to punitive damages in Texas include drunk driving accidents, defective product cases where a company was aware of the risks but ignored them, and cases involving assault or acts of violence.

How to Qualify for Punitive Damages in Texas

If you or your San Antonio personal injury lawyer have reason to believe that the defendant in your case is guilty of a tort or wrongdoing that qualifies you for punitive damages, you must present evidence supporting your claim to a judge and jury during a trial. A jury has the right to decide if you have met your burden of proof, and if so, how much to award for exemplary damages. Evidence to support a punitive damage claim should demonstrate that the defendant’s conduct was fraudulent, malicious, reckless or grossly negligent in connection to the incident. Evidence may include eyewitness reports, accident or police reports, expert testimony, and photographs and videos. There must be “clear and convincing” evidence, which is a higher standard than the other elements of a personal injury case (“preponderance of the evidence”).

Does Texas Have a Cap on Punitive Damages?

A jury must unanimously decide to issue exemplary damages and agree on the amount awarded. The amount will be determined based on factors such as the nature of the defendant’s wrongdoing, the extent to which the conduct compromises public health and safety, and the defendant’s ability to pay. In Texas, punitive damage awards are subject to caps, or legal limitations. In most cases, punitive damages are capped at the greater of $200,000 if economic damages are not awarded or double the amount of economic damages plus an equivalent amount of noneconomic damages, up to $750,000. Texas’s damage caps don’t apply to punitive damages awarded in cases where the defendant is guilty of certain felonies (e.g., homicide and aggravated assault), has caused a drunk-driving-related injury or death, or has sexually assaulted a child or elderly person. To discuss the possibility of recovering punitive damages for your personal injury case, contact us for a free consultation.