Exemplary damages in Texas, also known as punitive damages, are additional monetary awards that may be granted in civil lawsuits beyond compensatory damages. These damages are intended to punish defendants for particularly egregious conduct, deter similar behavior in the future, and to send a message that such actions are unacceptable in society.
In Texas, exemplary damages are typically awarded in cases involving:
- Fraud
- Malice
- Gross negligence
- Willful misconduct
If you’ve been injured on account of someone else’s gross negligence in Texas and are looking to seek punitive damages, Frank Sellers — the founding attorney of Sellers Law Firm and a winning Fort Worth/Dallas personal injury lawyer — can help. Schedule a free consultation with us today to start seeking the justice you deserve today!
What are exemplary damages under Texas law?
Exemplary damages in Texas are defined and governed by Chapter 41 of the Texas Civil Practice and Remedies Code. Specifically, Section 41.001(5) defines exemplary damages as:
“Any damages awarded as a penalty or by way of punishment but not for compensatory purposes. Exemplary damages are neither economic nor noneconomic damages.”
Exemplary damages are intended to act as a penalty or punishment for those whose behavior has harmed others, not to compensate those who have been harmed. Texas law allows exemplary damages only when the claimant proves by clear and convincing evidence that the harm resulted from fraud, malice, gross negligence, or willful misconduct.
What is the limit on exemplary damages in Texas?
The exemplary damages cap in Texas sets specific limitations on the amount of exemplary damages that can be awarded. This cap exists to prevent excessive punitive awards that could be deemed unconstitutional or potentially bankrupt defendants.
It also aims to balance the goals of punishment and deterrence with fairness and predictability in the legal system. Generally, exemplary damages may not exceed the greater of:
- Two times the amount of economic damages plus an amount equal to any noneconomic damages found by the jury, not to exceed $750,000; or
- $200,000
These caps, however, do not always apply. Certain cases, such as those involving specific types of felony conduct, can see the caps removed and the dollar amount of exemplary damages exceed millions. Those most common types of felony conduct people may sue for include:
- Murder
- Aggravated assault
- Sexual assault
- Aggravated sexual assault
- Forgery
- Fraudulent securing of document execution, such as an indictment or arrest warrant based on false or materially misleading information
- Intoxication assault
- Intoxication manslaughter
How are exemplary damages calculated in Texas?
When deciding how much to award in exemplary, or punitive damages, in Texas, the court or jury will consider:
- The nature of the wrongdoing
- The character of the conduct involved
- How much the defendant is to blame
- The situation and sensibilities of the parties concerned
- The extent to which such conduct offends a public sense of justice and propriety
- The net worth of the defendant
These factors help ensure that the punishment (in the form of exemplary damages) fits the crime. They allow the court to consider not just what happened, but why it happened, how it affected people, and whether the amount is appropriate given the defendant’s financial situation.
This helps in determining a fair and effective amount that will punish the wrongdoer and discourage similar behavior in the future.
What is an example of exemplary damages awarded?
While you can seek punitive damages for cases ranging from drunk driving truck accidents
and catastrophic injuries received at work to plant explosions and oilfield accidents, one of the most notable examples of exemplary damages awarded is in the McDonald’s hot coffee lawsuit (Liebeck v. McDonald’s Restaurants) from 1994. In this case:
- Stella Liebeck, 79, suffered third-degree burns after spilling McDonald’s coffee on her lap. She initially sought $2,000 to cover medical expenses, but McDonald’s refused to settle for more than $800.
- During the trial, it was revealed that McDonald’s had received hundreds of similar complaints about their extremely hot coffee, yet hadn’t changed their practices.
- The jury awarded Liebeck $200,000 in compensatory damages (reduced to $160,000 due to her partial fault) and $2.7 million in punitive damages.
- The punitive damages were later reduced by the judge to $640,000, for a total of $480,000 awarded to Stella.
This case exemplifies how punitive damages can be used to punish a defendant for egregious conduct (in this case, knowingly serving dangerously hot coffee despite numerous complaints) and to deter similar behavior in the future. The large punitive award was meant to send a strong message to McDonald’s and other companies about prioritizing consumer safety.
It’s worth noting that while this case is often cited, punitive damage awards can vary greatly depending on the specifics of each case and jurisdiction.
Exemplary damages in Texas FAQs
What is the difference between punitive damages and compensatory damages?
In Texas, compensatory damages are intended to reimburse the plaintiff for actual losses suffered, including economic and non-economic damages.
Exemplary (or punitive) damages, on the other hand, are meant to punish the defendant for egregious conduct and deter similar behavior in the future. Unlike compensatory damages, exemplary damages are not tied to specific losses incurred by the plaintiff.
How often are exemplary damages awarded?
Exemplary damages are not common in Texas due to the high burden of proof required to award them. Under Texas law, a plaintiff must prove by clear and convincing evidence that the harm resulted from fraud, malice, or gross negligence. This stringent standard, combined with statutory caps, means exemplary damages are awarded in only a small percentage of civil cases.
Can you get punitive damages for breach of contract in Texas?
Generally, punitive damages are not available for simple breach of contract cases in Texas. However, if the breach is accompanied by an independent tort, such as fraud or gross negligence, exemplary damages may be possible.
The Texas Supreme Court ruled that punitive damages in contract cases are only allowed if the breach also involves a separate wrongful act that would normally qualify for punitive damages.
Looking to seek exemplary damages in Texas? You need Sellers Law Firm by your side.
If you believe you have a case that warrants exemplary damages in Texas, you don’t have to build your case alone. Sellers Law Firm is here to fight for your rights and help make sure those who caused your harm learn their lesson.
Our team, led by aggressive work injury lawyer in Dallas/Fort Worth, Texas Frank Sellers, brings a wealth of experience and a proven track record in cases across Fort Worth and Dallas. We’re skilled negotiators and fierce litigators. And you don’t pay unless we win your case.
Don’t let wrongdoers off the hook. If you’ve suffered due to someone’s fraud, malice, gross negligence, or felonious conduct in Texas, contact us today to schedule your free consultation!
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