Punitive Damages in Texas Personal Injury Cases

Punitive Damages in Texas Personal Injury Cases

How do I prove punitive damages in my Texas personal injury case?

In Texas, the standard to prove punitive damages in a personal injury case requires the Plaintiff to show by clear and convincing evidence that the harm that caused the Plaintiff's injury resulted from fraud, malice, or gross negligence. Punitive damages are designed to punish the wrongdoer, as well as act as a deterrent for others from engaging in similar activities. These are also referred to as "exemplary damages" by Texas law. 

In most jurisdictions punitive damages can often be awarded when it is determined that the defendant's behavior was intentional or grossly negligent, and caused harm to another party. 

It is critical to keep in mind that each state and jurisdiction has varying legal standards on when punitive damages can be sought. Talk with one of our Austin personal injury lawyers for help understanding your Texas punitive damages case. This article will explain what Texas punitive damages are, how they differ from other types of damage awards, and how such awards may be used in legal proceedings.

What is the standard for proving punitive damages in a Texas personal injury case?

In Texas, punitive damages are also referred to as exemplary damages. The standard for proving punitive damages in a Texas personal injury case is found in Chapter 41, Section 41.003 of the Texas Civil Practice and Remedies Code on Damages. It states as follows:

         (a)  Except as provided by Subsection (c), exemplary damages may be awarded only if the claimant proves by clear and convincing evidence that the harm with respect to which the claimant seeks recovery of exemplary damages results from:

  • (1)  fraud;
  • (2)  malice;  or
  • (3)  gross negligence.
Chapter 41, Section 41.003 of the Texas Civil Practice and Remedies Code on Damages

How do I prove the "fraud" element in my Texas punitive damages claim? 

To prove "fraud" in your Texas punitive damages claim, you must prove fraud "other than constructive fraud." Under Texas law, you can prove fraud by showing the Defendant knowingly made a false and material representation that was made with the intent to induce someone to take action on that misrepresentation. 

How do I prove the "malice" element in my Texas punitive damages claim?

In Texas, "malice" means a "specific intent by the defendant to cause substantial injury or harm to the claimant." To prove "malice" in your Texas punitive damages claim, you must prove that the Defendant had a specific intent to cause you substantial bodily injury harm. The evidence to support this claim must show that the Defendant acted with this specific intent. 

How do I prove the "gross negligence" element in my Texas punitive damages claim? 

In Texas, "gross negligence" means an act or omission:

  • (A)  which when viewed objectively from the standpoint of the actor at the time of its occurrence involves an extreme degree of risk, considering the probability and magnitude of the potential harm to others;  and
  • (B)  of which the actor has actual, subjective awareness of the risk involved, but nevertheless proceeds with conscious indifference to the rights, safety, or welfare of others.

To prove "gross negligence" in your Texas punitive damages claim, you must prove that from the Defendant's standpoint at the time of the incident, the Defendant's conduct involved an extreme risk and that the Defendant was aware of the risk but nonetheless continues with the action. 

Other requirements for proving punitive damages in a Texas personal injury case

In Texas, there are some other things that must be proven for someone to receive an award of punitive damages. These are often case specific. If you believe that punitive damages may be deserved in your personal injury can, talk with you Austin personal injury lawyer early in your case so that they may begin to plan for the punitive damages claim. Meeting Texas' standard for punitive damages requires planning and strategy during discovery. 

"Clear and convincing evidence"

To be successful in your claim for punitive damages in Texas, you must be able to demonstrate that the evidence submitted for your claim is "clear and convincing." The Section on punitive damages states:

(b)  The claimant must prove by clear and convincing evidence the elements of exemplary damages as provided by this section.  This burden of proof may not be shifted to the defendant or satisfied by evidence of ordinary negligence, bad faith, or a deceptive trade practice.

Chapter 41, Section 41.003 of the Texas Civil Practice and Remedies Code on Damages

The clear and convincing evidence standard is a burden of proof that is higher than the ordinary civil preponderance of evidence standard, but typically lower than that of beyond a reasonable doubt. This means that the plaintiff must demonstrate to the court by a high degree of certainty that the defendant’s behavior meets the standard for punitive damages, and caused harm to another party in order for punitive damages to be awarded. 

To meet this threshold, evidence given by either side should be compelling, credible, and consistent with one another. It should also be logically probable and more likely true than not. The clear and convincing evidence standard must be met in order for punitive damages to be given in Texas personal injury cases. Some states do not allow such awards at all.

"Culpable mental state"

In addition to the requirement of clear and convincing evidence, Texas sometimes requires evidence directly related to the at faulty party's mental state. 

(c)  If the claimant relies on a statute establishing a cause of action and authorizing exemplary damages in specified circumstances or in conjunction with a specified culpable mental state, exemplary damages may be awarded only if the claimant proves by clear and convincing evidence that the damages result from the specified circumstances or culpable mental state.

Chapter 41, Section 41.003 of the Texas Civil Practice and Remedies Code on Damages

If your Texas personal injury claim for punitive damages relates to the Defendant having a particular culpable mental state, than additional proof will be required to demonstrate that the damages you sustained result from the "specified circumstances or culpable mental state."

This can be a complicated standard and threshold to understand, so if you have question regarding the requirement for evidence related to the at fault party's culpable mental state, you will want to discuss this with your personal injury lawyer. 

Jury must be unanimous

In Texas personal injury cases, the issue of how many jurors must agree with a particular part of the case is often a very important factor. For instance, in Texas punitive damages claims, the Chapter on punitive damages and exemplary damages required that the jury be unanimous regarding the finding of liability for punitive damages. 

(d)  Exemplary damages may be awarded only if the jury was unanimous in regard to finding liability for and the amount of exemplary damages.

Chapter 41, Section 41.003 of the Texas Civil Practice and Remedies Code on Damages

In Texas personal injury trials, the requirement for a unanimous verdict on an issue can be a very difficult hurdle to cross. As the standard of a unanimous finding can often be very difficult to meet, given that there are so many reasons why jurors could potentially disagree on whether or not a standard has been met. As you are preparing to bring your punitive damages claim forward, you will want to discuss strategy with your personal injury lawyer, and figure out the chances of meeting these requirements set forth by Texas' laws. 

Who can I collect punitive damages from? 

Even if you get an award of punitive damages, it can be hard to collect the money if it is not covered by their insurance policy. Often, a defendant's insurance policy will not actually cover an award of punitive damages. This can be very troubling for plaintiffs, as they then may be forced to try and collect the punitive damages award from the defendant directly or otherwise. 

What are the caps on punitive damages in Texas?

Even if you are successful at proving your punitive damages claim in Texas, your punitive damages award may be subject to Texas' limitations and caps on punitive damages. Section 41.008 of Texas' Civil Practice and Remedies Code provides these limitations:

Exemplary damages awarded against a defendant may not exceed an amount equal to the greater of:

  • (1)(A) two times the amount of economic damages;  plus
  • (B) an amount equal to any noneconomic damages found by the jury, not to exceed $750,000;  or
  • (2)  $200,000.
Chapter 41, Section 41.003 of the Texas Civil Practice and Remedies Code on Damages

The calculation of the caps on punitive damages in Texas requires a careful examination of what exactly the punitive damages were awarded for specifically. The court will examine the amount of the specific awards in relation to each other. Below are some helpful examples to demonstrate how these calculation could work.

Texas' punitive damages cap example: Low economic damages, but high non-economic damages

  • Jury verdict for Plaintiff
  • Jury awards $100,000 in economic damages
  • Jury awards $4,000,000 in non-economic damages
  • $950,000 cap on punitive damages

In this example of punitive damages caps in Texas, the economic damages are only $100,000, but the non-economic damages are above the $750,000 non-economic limit. Therefore, the Court would double the economic damages award ($100,000x2) and add it to the punitive damages limit of $750,000 for non-economic damages. The the cap on punitive damages in this example would be $950,000 ($200,000+$750,000).

Texas' punitive damages cap example: High economic damages, but low non-economic damages

  • Jury verdict for Plaintiff
  • Jury awards $1,000,000 in economic damages
  • Jury awards $1,200,000 in non-economic damages
  • $2,750,00 cap on punitive damages

In this example of punitive damages caps in Texas, the economic damages are high at $1,000,000, and the non-economic damages are also high at $1,200,000. Therefore the limitation would apply and the Court would double the economic damages award ($1,000,000x2) and add it to the punitive damages limit of $750,000 for non-economic damages. The cap on punitive damages in this example would be $2,750,000 ($2,000,000 + $750,000).

Texas' punitive damages cap example: Low economic damages, and low non-economic damages

  • Jury verdict for Plaintiff
  • Jury awards $10,000 in economic damages
  • Jury awards $12,000 in non-economic damages

For this scenario, punitive damages caps in Texas would apply with the second part of the rule. Here, the economic damages are low at $10,000 and the non-economic damages are also low at $12,000. Therefore the limitation would apply and the Court would set a cap on the punitive damages award at $200,000.

How is the amount of punitive damages determined?

Texas' Section 41.011 provides a list of several factors that can be used to determine the appropriate amount of punitive damages in a personal injury lawsuit:

Sec. 41.011.  EVIDENCE RELATING TO AMOUNT OF EXEMPLARY DAMAGES.  (a)  In determining the amount of exemplary damages, the trier of fact shall consider evidence, if any, relating to:

  • (1)  the nature of the wrong;
  • (2)  the character of the conduct involved;
  • (3)  the degree of culpability of the wrongdoer;
  • (4)  the situation and sensibilities of the parties concerned;
  • (5)  the extent to which such conduct offends a public sense of justice and propriety;  and
  • (6)  the net worth of the defendant
Chapter 41, Section 41.003 of the Texas Civil Practice and Remedies Code on Damages

This long list of factors will be relevant for a punitive damages claim, and during discovery your personal injury lawyer will be working to obtain evidence to support these factors. In fact, with a claim of punitive the court may allow you to obtain evidence or information related to these factors, when you otherwise would not be allowed to without a punitive damages claim.

It is critical that you talk with your lawyer early in your case if you believe that there should be punitive damages awarded in your case. This will be needed to give you lawyer enough time to prepare to seek the evidence needed to present proof of these factors for punitive damages.

Contact Fletcher Law if you believe that punitive damages should be awarded in your personal injury case

If you have been injured in a personal injury case in the state of Texas, it is important to understand the rules on punitive damages. Punitive damages are awarded as an additional form of compensation to a plaintiff when the defendant's conduct has been deemed especially egregious. In Texas, there are limitations on punitive damages, and these can have an impact on the amount of compensation you may be entitled to.

In order to ensure that you receive the best possible outcome for your case, it is essential that you contact an experienced attorney who understands the laws surrounding punitive damages in Texas. At Fletcher Law, we have extensive experience with personal injury cases and understand how to build a successful claim for punitive damages. We can help guide you through the entire process and work hard to maximize your chances at receiving all available compensation for your injuries.

Our team will thoroughly review all aspects of your case and use our knowledge of Texas law to present persuasive evidence in pursuit of receiving maximum damages. Additionally, we will provide clear insight into the legal proceedings while keeping you informed throughout each step of the process.

If you believe that punitive damages should be awarded in your personal injury case, don’t hesitate to contact Fletcher Law today. We will explore all options available so that you can get the justice and compensation that are owed to you for your injuries and losses suffered.