What Are Punitive (Exemplary) Damages?
Punitive damages punish a defendant for extreme conduct and discourage others from doing the same thing. Texas law calls them exemplary damages (CPRC §41.001).
They are different from the damages that repay your losses:
- Economic damages cover money losses, such as medical bills and lost wages.
- Non-economic damages cover pain, mental anguish, and lost quality of life.
- Exemplary damages are added on top, and only in rare cases. You must first be awarded actual damages.
When Does Texas Allow Punitive Damages?
You must prove by clear and convincing evidence that your harm came from one of three things (§41.003):
- Fraud: intentional deception, other than constructive fraud.
- Malice: a specific intent to cause substantial injury or harm.
- Gross negligence: conduct with an extreme degree of risk that the defendant actually knew about and went ahead with anyway, with conscious indifference to others’ safety.
That is a higher burden of proof than the “more likely than not” standard in most negligence claims. The jury must also be unanimous on both liability and the amount.
Examples of Punitive Damages
Punitive damages usually come up when someone knew about a serious danger and ignored it. Examples include:
- A drunk driver, especially one with prior DWI convictions, who causes a serious crash
- A trucking company that keeps a driver on the road after failed drug tests or falsified hours-of-service logs
- A manufacturer that knows a product is dangerous and keeps selling it without a warning
- An employer that ignores repeated reports of a deadly hazard
How Much Can You Get? Texas Caps
Texas caps exemplary damages in most cases (§41.008). The award cannot exceed the greater of:
- $200,000, or
- Two times your economic damages, plus your non-economic damages up to $750,000.
For example, with $500,000 in economic damages and $400,000 in non-economic damages, the cap would be $1.4 million.
The cap does not apply when the harm comes from certain felonies listed in §41.008(c), including murder, aggravated assault, intoxication assault, and intoxication manslaughter. When setting the amount, the jury considers the nature of the wrong, the defendant’s degree of fault, and the defendant’s net worth (§41.011).
How to Seek Punitive Damages
Raise the claim early. Evidence of what a company or driver knew, such as maintenance records, driver files, and prior complaints, can be lost if no one asks for it. Most Texas injury lawsuits must be filed within two years.
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Frequently Asked Questions
What is the difference between punitive and exemplary damages?
There is no difference in Texas. "Exemplary damages" is the term Texas law uses in Chapter 41 of the Civil Practice and Remedies Code. Most other states and most people say "punitive damages." Both mean damages meant to punish the defendant rather than repay the injured person's losses.
Can you get punitive damages for a car accident in Texas?
Sometimes. An ordinary careless mistake is not enough. Punitive damages may be available when the driver's conduct rises to gross negligence, such as driving drunk or with a history of drunk driving. In serious drunk-driving cases charged as intoxication assault or intoxication manslaughter, the usual cap does not apply.
How much are punitive damages in Texas?
The jury decides the amount after weighing the factors in Section 41.011, including how bad the conduct was and the defendant's net worth. In most cases the award is capped at the greater of $200,000 or two times economic damages plus non-economic damages up to $750,000.
Do I need a lawyer to seek punitive damages?
It is strongly advisable. You must meet a higher burden of proof than in an ordinary injury claim, and evidence of what the defendant knew often has to be gathered quickly. A lawyer can tell you whether your case may qualify and preserve the evidence it needs.