When someone is injured in an accident in Texas, they may be entitled to compensation for things like medical bills, lost wages, and pain and suffering. These are known as compensatory damages and are designed to make the injured person “whole” again.
However, in certain cases, Texas law also allows for another category of damages: exemplary damages. Unlike compensatory damages, exemplary damages are not meant to repay the victim. Instead, they are designed to punish the wrongdoer and send a message that this type of conduct will not be tolerated.
What Are Exemplary Damages Under Texas Law?
Exemplary damages (sometimes called punitive damages) are defined by Texas Civil Practice and Remedies Code § 41.001. According to the statute, these damages are meant to punish a defendant for fraud, malice, or gross negligence.
That makes them different from economic damages, like medical expenses, or non-economic damages, like emotional distress. Exemplary damages aren’t about compensating the victim for their losses. Instead, they are about holding the wrongdoer accountable for especially harmful conduct.
When Can Exemplary Damages Be Awarded in Texas?
Not every accident or injury qualifies for exemplary damages. In fact, Texas law sets a high bar for these awards.
To recover exemplary damages, a plaintiff must usually prove that the defendant acted with one of the following states of mind:
- Fraud: The defendant intentionally deceived the plaintiff for personal gain, leading to injury
- Malice: The defendant had ill will or intended to cause substantial harm
- Gross negligence: The defendant’s actions showed such extreme disregard for the safety of others that they amounted to more than ordinary carelessness
For exemplary damages to be awarded, the behavior in question must go beyond mere negligence or carelessness.
The Burden of Proof for Exemplary Damages
One of the most important differences between compensatory damages and exemplary damages is the burden of proof.
For compensatory damages, a plaintiff usually only needs to prove their case by a “preponderance of the evidence.” It means it is more likely than not that the defendant caused their injuries.
The standard for exemplary damages is higher. Texas law requires “clear and convincing evidence” that the defendant acted with fraud, malice, or gross negligence.
This higher standard is meant to reflect the serious nature of punitive awards.
Caps on Exemplary Damages in Texas
Texas law also places limits on how much a plaintiff can recover in exemplary damages. Under state statute, the cap is generally whichever is greater between:
- Two times the amount of economic damages, plus an amount equal to non-economic damages up to $750,000, or
- $200,000.
For example, if a jury awards $500,000 in economic damages and $400,000 in non-economic damages, exemplary damages would be capped at $1.75 million.
However, there are exceptions. In cases involving certain crimes, such as murder, the cap does not apply.
Examples of Cases Where Exemplary Damages May Apply
Although exemplary damages are not common, they may be awarded in situations where the defendant’s conduct goes far beyond negligence.
Examples include:
- A drunk driver with prior convictions causing a deadly car accident
- A company knowingly selling a defective product that poses a serious risk to consumers
- An employer ignoring repeated reports of dangerous working conditions that result in injury or death
- A nursing home intentionally neglecting or abusing residents
Each case depends on the specific facts, but these examples illustrate the kind of conduct courts may punish with exemplary damages.
How a Personal Injury Lawyer Can Help You Recover Exemplary Damages
Since exemplary damages require such a high burden of proof, they are not easy to obtain. Insurance companies and defense attorneys will often fight hard to keep these damages off the table.
A skilled personal injury lawyer can:
- Investigate the facts of your case to uncover evidence of gross negligence, fraud, or malice
- Work with experts who can testify about the defendant’s conduct and its consequences
- Present a strong argument for exemplary damages in negotiations and at trial
- Ensure that all statutory requirements are met so your case is not dismissed on technical grounds
Having experienced representation is essential if you believe exemplary damages may apply to your case. This is especially true considering your case must almost certainly go to trial for them to be a possibility.
Contact a Fort Worth Personal Injury Lawyer for Legal Help
Exemplary damages in Texas are not available in every personal injury case. They are reserved for situations involving fraud, malice, or gross negligence and require clear and convincing proof. While capped by statute in most cases, they can still result in significant compensation that ends up in your pocket.
Schedule a free consultation with an experienced Fort Worth personal injury attorney at Parker Law Firm Injury Lawyers today at (817)-510-9400 to learn about your legal rights and options.
