Exemplary Damages Available in Personal Injury Cases in Texas

In Texas, exemplary damages in personal injury cases are awarded as a form of punishment and deterrence for particularly egregious conduct by the defendant. Under Texas law, exemplary damages may only be awarded if the claimant proves by clear and convincing evidence that the harm resulted from fraud, malice, or gross negligence. “Malice” is defined as a specific intent by the defendant to cause substantial injury or harm to the claimant, while “gross negligence” involves an extreme degree of risk and conscious indifference to the rights, safety, or welfare of others.

The amount of exemplary damages must be reasonably proportioned to the actual damages awarded, though there is no fixed ratio. Factors considered in determining the reasonableness of exemplary damages include the nature of the wrong, the character of the conduct, the degree of culpability, the situation and sensibilities of the parties, and the extent to which the conduct offends a public sense of justice and propriety. Additionally, the net worth of the defendant may be relevant in determining the amount of exemplary damages.

Statutory limitations also apply to exemplary damages in Texas. Generally, the amount may not exceed the greater of (1) two times the amount of economic damages plus an amount equal to noneconomic damages not exceeding $750,000, or (2) $200,000. However, certain statutes may provide exceptions to these caps. The jury must be unanimous in finding liability for and the amount of exemplary damages.

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In summary, exemplary damages in Texas personal injury cases are awarded for conduct involving fraud, malice, or gross negligence, subject to statutory caps and proportionality requirements, and are determined based on the specific facts of each case.