What Are Economic Damages?
Economic damages are compensation for losses you can prove with a dollar amount. Texas law defines them as compensatory damages for actual economic or pecuniary loss (CPRC §41.001).
They are one of two main categories of actual damages. The other is non-economic damages, which cover pain, mental anguish, and similar harm.
Common Types of Economic Damages
Most Texas injury claims include several of these losses:
- Medical expenses: ambulance, emergency care, surgery, hospital stays, therapy, prescriptions, and medical equipment
- Future medical care: treatment your doctors expect you to need later
- Lost wages: pay, overtime, and benefits missed while you recover
- Lost earning capacity: reduced ability to earn in the future (see loss of earnings)
- Property damage: repair or replacement of a vehicle or other belongings (see property damage)
- Out-of-pocket costs: mileage, parking, home help, and similar expenses
Texas Rules That Affect Economic Damages
Two Texas statutes shape how these losses are measured.
- Paid or incurred: Medical expenses are limited to what was actually paid or incurred by you or on your behalf, not the full billed price (§41.0105).
- Net lost earnings: Claims for lost earnings must be proven as the net loss after federal income tax (§18.091).
Your award is also reduced by your share of fault, and you recover nothing if you are more than 50% responsible (CPRC ch. 33).
How to Prove Economic Damages
Strong records make economic damages hard to dispute. Keep:
- Every medical bill, explanation of benefits, and pharmacy receipt
- Pay stubs, tax returns, and a letter from your employer about missed time
- Repair estimates, photos, and receipts for damaged property
- A simple log of mileage and other costs
Future losses usually need expert support, such as a treating doctor, life care planner, vocational expert, or economist. Most Texas injury suits must be filed within two years. A free case review can help you list every loss before you talk to an insurer.
About Brad Parker
Frequently Asked Questions
What are economic damages in a personal injury case?
Economic damages are the financial losses caused by an injury that can be added up in dollars. Common examples are hospital and doctor bills, therapy, prescriptions, missed paychecks, reduced future earnings, vehicle repairs, and travel to medical appointments. They differ from non-economic damages, which cover pain, mental anguish, and other losses with no receipt.
Can I recover future medical expenses in Texas?
Yes, if the evidence shows the future care is reasonably probable. Doctors, life care planners, and economists often estimate what surgeries, therapy, medication, or home help you will likely need and what it will cost. Without that proof, a jury cannot award future medical expenses, so documenting your treatment plan matters.
Is there a cap on economic damages in Texas?
Not in most injury cases. A jury can award the full amount of proven economic losses. Medical malpractice cases have caps on non-economic damages, and exemplary damages are capped under Chapter 41, but ordinary economic losses from a car crash or fall are not limited by a dollar cap.
How are economic damages calculated?
Past losses are totaled from records such as medical bills, pay stubs, tax returns, and repair estimates. Future losses are projected, often with help from treating doctors and economists who estimate future care and income and reduce them to present value. Any percentage of fault assigned to you reduces the total.
More resources