Have you ever wondered what exemplary damages mean in a Texas injury case? Exemplary, also called punitive, damages are additional damages awarded as a penalty, not to compensate the plaintiff. They are neither economic nor non-economic damages. Although they can arise in many types of civil cases, this article focuses on how they work in Texas personal injury cases.
Are Exemplary Damages the Same as Punitive Damages?
Exemplary damages are often referred to as punitive damages. The terms refer to the same type of damages in a personal injury case.
Punitive or exemplary damages are awarded to punish serious wrongdoing and deter it from happening again. They are awarded as a “penalty” for the at-fault party, but not for compensatory purposes for the victim.
It can be somewhat confusing because the victim receives the money awarded for exemplary damages even though the damages do not compensate the victim for actual losses.
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How Are Compensatory Damages and Exemplary Damages Related?
Texas law provides for different types of damages in personal injury cases. Compensatory damages are awarded to make you whole. They fix what you lost. Compensatory damages include economic and non-economic damages, such as medical bills or pain and suffering.
Compensation fixes harm. Exemplary damages are not economic or non-economic in Texas. Their sole purpose is to punish the defendant. Exemplary damages financially punish the wrongdoer to discourage them and others from engaging in the same conduct in the future.
When Can You Recover Exemplary Damages in Texas?
Exemplary damages are only awarded under specific circumstances. You need strong proof to recover exemplary damages.
According to Texas Civil Practice & Remedies Code §41.003, an injured person must prove by clear and convincing evidence that the harm they suffered was caused by fraud, malice, or gross negligence. This burden of proof is a higher bar than the “more likely than not” standard used for compensatory damages.
You must have clear and strong evidence proving the defendant acted with:
- Fraud: Lying on purpose for gain that hurts someone
- Malice: Specific intent to cause substantial harm or injury to the plaintiff
- Gross negligence: No care for others’ safety, like ignoring danger on purpose
Normal mistakes, ordinary bad faith, or unfair business deals do not work. The bar for exemplary damages is extremely high, which is why they are awarded in only a small percentage of cases.
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Examples of Cases That May Warrant Exemplary Damages
Some cases involve conduct so egregious that courts may award punitive damages.
Examples of cases that might result in exemplary damages include, but are not limited to:
- Drunk drivers who cause crashes that result in another person’s death or severe injuries
- Employers who intentionally ignore or violate safety measures that result in a worker’s death or serious injury
- Intentional torts where the defendant specifically intended to cause substantial harm, including assault
- Manufacturers who knowingly sell defective products that cause deaths and injuries
An experienced Houston personal injury lawyer can review your case to determine if you may be entitled to punitive damages.
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Caps on Exemplary Damages in Texas
Texas limits exemplary damages for fairness.
Texas Civil Practice & Remedies Code §41.008 sets the cap on exemplary damages at the greater of:
- Two times the amount of economic damages awarded plus an amount equal to the non-economic damages up to $750,000; OR,
- $200,000.
Limits on exemplary damages do not apply when the plaintiff seeks exemplary damages based on conduct that constitutes certain serious felonies. Examples could include, but are not limited to, murder, aggravated sexual assault, injury to a child, elderly individual, or disabled individual, trafficking of persons, and intoxication assault.
What Factors Determine the Amount of Exemplary Damages?
Juries look at factors to set exemplary damages. They match punishment to the act for deterrence.
Factors juries consider include:
- The nature and severity of the conduct
- If the defendant knew the danger of harm and proceeded without regard to safety
- The character of the conduct
- The extent to which the conduct offends public decency and justice
- The wrongdoer’s net worth
- The situation and sensibilities of the parties involved
Juries are unaware of the caps on exemplary damages. Awarding punitive damages requires a unanimous decision by the jurors, including a unanimous decision for the amount to be awarded.
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Exemplary damages play an important role in Houston personal injury cases. They aren’t meant to replace what the victim lost, but to punish people or companies who act with extreme recklessness or intent to cause harm. These damages also help discourage others from doing the same thing in the future.
For more information, contact the Houston personal injury lawyers at Attorney Brian White Personal Injury Lawyers at (713) 500-5000 to schedule a free consultation.
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